A typical example; an economy is looking to boost its agricultural sector, it can come up with policies of not taxing infact agricultural companies, that singular move can attract a lot of investments in the agricultural sector, it can also offer grants, and even low interest loans to those in those sectors. Tax exemption/reduction can actually attract investment and also lift burden off existing businesses or industries in that particular sector. But it has to be done with careful consideration. Tax is a major source of government revenue, it generates funds for infrastructure and key areas in government. So tax exemptions can only be granted when it is really necessary or in areas that wouldn't really hurt the government (that's sectors that wouldn't have generated a lot of tax revenue). Your points are valid, the essence of taxation in the general overview is structured for the governments to generate revenues in other to facilitate on public infrastructures. When the government oversees a business sector such that investors are in one way or the other benefiting from the provisions under the authority watch, it is expected that a specific percentage of your incomes should be remitted to the government which as a dimension of public resources could as well encourage economy development in the society. The vice could be that it discourages investors to indulge on those wings where they may be taxed while find it hard to meet up their business goals and same time paying taxes if they are not making sufficient incomes to cover their expenses while their obligations was to make profits. So the course taxes could push them away or probably when the taxes are too high to be affordable considering how much income the makes.
A typical example; an economy is looking to boost its agricultural sector, it can come up with policies of not taxing infact agricultural companies, that singular move can attract a lot of investments in the agricultural sector, it can also offer grants, and even low interest loans to those in those sectors. Tax exemption/reduction can actually attract investment and also lift burden off existing businesses or industries in that particular sector. But it has to be done with careful consideration. Tax is a major source of government revenue, it generates funds for infrastructure and key areas in government. So tax exemptions can only be granted when it is really necessary or in areas that wouldn't really hurt the government (that's sectors that wouldn't have generated a lot of tax revenue). Your points are valid, the essence of taxation in the general overview is structured for the governments to generate revenues in other to facilitate on public infrastructures. When the government oversees a business sector such that investors are in one way or the other benefiting from the provisions under the authority watch, it is expected that a specific percentage of your incomes should be remitted to the government which as a dimension of public resources could as well encourage economy development in the society. The vice could be that it discourages investors to indulge on those wings where they may be taxed while find it hard to meet up their business goals and same time paying taxes if they are not making sufficient incomes to cover their expenses while their obligations was to make profits. So the course taxes could push them away or probably when the taxes are too high to be affordable considering how much income the makes.

A typical example; an economy is looking to boost its agricultural sector, it can come up with policies of not taxing infact agricultural companies, that singular move can attract a lot of investments in the agricultural sector, it can also offer grants, and even low interest loans to those in those sectors. Tax exemption/reduction can actually attract investment and also lift burden off existing businesses or industries in that particular sector. But it has to be done with careful consideration. Tax is a major source of government revenue, it generates funds for infrastructure and key areas in government. So tax exemptions can only be granted when it is really necessary or in areas that wouldn't really hurt the government (that's sectors that wouldn't have generated a lot of tax revenue). Your points are valid, the essence of taxation in the general overview is structured for the governments to generate revenues in other to facilitate on public infrastructures. When the government oversees a business sector such that investors are in one way or the other benefiting from the provisions under the authority watch, it is expected that a specific percentage of your incomes should be remitted to the government which as a dimension of public resources could as well encourage economy development in the society. The vice could be that it discourages investors to indulge on those wings where they may be taxed while find it hard to meet up their business goals and same time paying taxes if they are not making sufficient incomes to cover their expenses while their obligations was to make profits. So the course taxes could push them away or probably when the taxes are too high to be affordable considering how much income the makes.

A typical example; an economy is looking to boost its agricultural sector, it can come up with policies of not taxing infact agricultural companies, that singular move can attract a lot of investments in the agricultural sector, it can also offer grants, and even low interest loans to those in those sectors. Tax exemption/reduction can actually attract investment and also lift burden off existing businesses or industries in that particular sector. But it has to be done with careful consideration. Tax is a major source of government revenue, it generates funds for infrastructure and key areas in government. So tax exemptions can only be granted when it is really necessary or in areas that wouldn't really hurt the government (that's sectors that wouldn't have generated a lot of tax revenue). Your points are valid, the essence of taxation in the general overview is structured for the governments to generate revenues in other to facilitate on public infrastructures. When the government oversees a business sector such that investors are in one way or the other benefiting from the provisions under the authority watch, it is expected that a specific percentage of your incomes should be remitted to the government which as a dimension of public resources could as well encourage economy development in the society. The vice could be that it discourages investors to indulge on those wings where they may be taxed while find it hard to meet up their business goals and same time paying taxes if they are not making sufficient incomes to cover their expenses while their obligations was to make profits. So the course taxes could push them away or probably when the taxes are too high to be affordable considering how much income the makes.