Export incentive: Difference between revisions

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<ul>
<li>[[Price control]]</li>
<li>[[Galloping inflation]]</li>
<li>[[Barriers to trade]]</li>
<li>[[Over-valued currency]]</li>
<li>[[Emerging market economy]]</li>
<li>[[Non-tariff barriers]]</li>
<li>[[Income Shifting]]</li>
<li>[[Barriers to exit]]</li>
<li>[[Effects of tourism development]]</li>
</ul>
}}
'''Export incentive''' is main ingredient of trade policy. It is exception to the general tax regime. It enables exporters to bring down prices without reducing their net profits. It has a positive impact on exports but in the same time it is causing loss of the  [[government]] revenue. [[Export incentives]] are political attractive because their costs are less visible than that of other export promotion policies that engage explicit budget outlays. Export incentives, fiscal incentives and export promotions are significant part of economy's trade [[strategy]]. These strategies are crucial to reinforce the productivity of all sectors and to maintain international [[competitiveness]] <ref> Imtiaz A., 2015, p.100</ref>.</p>
'''Export incentive''' is main ingredient of trade policy. It is exception to the general tax regime. It enables exporters to bring down prices without reducing their net profits. It has a positive impact on exports but in the same time it is causing loss of the  [[government]] revenue. [[Export incentives]] are political attractive because their costs are less visible than that of other export promotion policies that engage explicit budget outlays. Export incentives, fiscal incentives and export promotions are significant part of economy's trade [[strategy]]. These strategies are crucial to reinforce the productivity of all sectors and to maintain international [[competitiveness]] <ref> Imtiaz A., 2015, p.100</ref>.</p>


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== References ==
{{infobox5|list1={{i5link|a=[[Price control]]}} &mdash; {{i5link|a=[[Galloping inflation]]}} &mdash; {{i5link|a=[[Barriers to trade]]}} &mdash; {{i5link|a=[[Over-valued currency]]}} &mdash; {{i5link|a=[[Emerging market economy]]}} &mdash; {{i5link|a=[[Non-tariff barriers]]}} &mdash; {{i5link|a=[[Income Shifting]]}} &mdash; {{i5link|a=[[Barriers to exit]]}} &mdash; {{i5link|a=[[Effects of tourism development]]}} }}
 
==References ==
* Ahuja R.,(2001) ''[http://icrier.org/pdf/rajeev72try.PDF Export incentives in India within WTO framework]'', Working Paper NO. 72; Indian Council for Research on International Economic Relations Core-6A, 4th Floor, India Habitat Centre, Lodi Road, New Delhi-110 003
* Ahuja R.,(2001) ''[http://icrier.org/pdf/rajeev72try.PDF Export incentives in India within WTO framework]'', Working Paper NO. 72; Indian Council for Research on International Economic Relations Core-6A, 4th Floor, India Habitat Centre, Lodi Road, New Delhi-110 003
* Arozamena L., Weinschelbaum F.,(2012) ''[https://publications.iadb.org/publications/english/document/Incentive-Schemes-in-Export-and-Investment-Promotions.pdf Incentive Schemes in Export and Investment Promotions]'', IDB Publications (Working Papers) 4090, Inter-American [[Development bank|Development Bank]].
* Arozamena L., Weinschelbaum F.,(2012) ''[https://publications.iadb.org/publications/english/document/Incentive-Schemes-in-Export-and-Investment-Promotions.pdf Incentive Schemes in Export and Investment Promotions]'', IDB Publications (Working Papers) 4090, Inter-American [[Development bank|Development Bank]].

Revision as of 19:59, 17 November 2023

Export incentive is main ingredient of trade policy. It is exception to the general tax regime. It enables exporters to bring down prices without reducing their net profits. It has a positive impact on exports but in the same time it is causing loss of the government revenue. Export incentives are political attractive because their costs are less visible than that of other export promotion policies that engage explicit budget outlays. Export incentives, fiscal incentives and export promotions are significant part of economy's trade strategy. These strategies are crucial to reinforce the productivity of all sectors and to maintain international competitiveness [1].

Form and extent of export incentives diverge from country to country according as the country's economic structure. Depends on overall budget country has to choose the best structure of export incentives to be able to achieve the objective of export promotion [2].

The rationale for using export incentives

Export incentives are used for the following reasons [3] :

  • depreciation of the exchange rate, which increments the profitability of exports,
  • high import content of export items can limit the incentive effect,
  • export incentives are more effective in targeting concrete exports, mainly value added and emerging exports.

Examples of export incentives

The most famous examples of export incentives are [4]:

  • lower income tax rates,
  • cash incentives,
  • tax incentives ( tax holidays, reduced tax rates on profits or income, lower tariffs on imported equipment, allowing accelerated depreciation),
  • zero-rating sales tax,
  • concessional export finance,
  • exemption from export duties.

Footnotes

  1. ↑ Imtiaz A., 2015, p.100
  2. ↑ Ahuja R.,2001, p.4
  3. ↑ Imtiaz A., 2015, p.100
  4. ↑ Imtiaz A., 2015, p.100


Export incentive — recommended articles
Price control — Galloping inflation — Barriers to trade — Over-valued currency — Emerging market economy — Non-tariff barriers — Income Shifting — Barriers to exit — Effects of tourism development

References

Author: Agnieszka Bednarek

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