Tax incentives for economic development (the case of Turkey)

ABSTRACT In developing countries, the main objective of the economic policy is to establish an economic development in the country. Achieving an economic development requires a long period. The first step in this process is to provide infrastructure, then continue with an industrial production. In other words, achieving an economic development is related with industrilization. In this respect, government must improve public investment and provide incentives for private sector in order to increase savings. In relation with the economic development in our country after the planned period (1963), incentives policies have become more important Within these incentives, tax incentives have been widely applied to the private sector. Especially after 1980's, the increasing importance of export promotion policies, these types of incentive policies applied widely. VI