Suggest four ways on how tax policy can be used to promote the growth of small and medium enterprises (SMEs) in your country

1. Deduction of tax rates for SMEs in order to increase retained profits for reinvestment purposes.
2. Protection of the market for SMEs through discouraging import of finished products by imposing heavy import duties and promoting of purchases of locally produced goods.
3. Subsidized taxes and tax incentives to create growth of SMEs.
4. Acquisition costs should be allowable deductions to the SMEs to encourage acquisitions for growth of SMEs.
5. Since SMEs depend on loans as a major source of growth capital, the government could provide tax incentives to lenders of SMEs in order to lower the interest rates.

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Wilfykil answered the question on February 13, 2019 at 07:50