Macro economic results of exclusion and exemption on corporation tax

VI EK- 6 ABSTRACT Governments wants to promote investments, saves, exports and foreign exchange activities by many instruments. One of the main instruments are tax incentives. Tax exclusion and exemption have been used widely in Turkish corporate tax system especially since 1980's. The use of corporate tax incentives cause direct costs. Due to the corporate tax incentives^-the effective corporate tax rate is materialized lower than legal tax rates. Consequently, the effectiveness of the corporate tax exclusion and exemption -is studied in this study: But, the regression analysis could not be'used because pf locking of sufficient data. Therefore, the effectiveness of corporate tax exclusion and exemption is measured by calculating its elasticity,-. ??-,- - ~- - """ '. - * It is found that, the use of tax incentives is a relatively expensive way to promote such economic activities. Therefore, corporate tax incentives need to be gradually removedr