Define the term 'tax concession'. GROUP: B Descriptive Answer Questions 5 × 10 = 50

Tax concession refers to the reduction or exemption of tax liabilities granted by the government to individuals, businesses, or specific sectors to encourage economic growth, investment, or social welfare. It can take the form of tax exemptions (complete waiver of tax), tax deductions (reduced taxable income), tax credits (direct reduction in tax payable), or lower tax rates for eligible entities.

Tax concessions are typically provided to:

• Promote investment in underdeveloped regions.
• Stimulate innovation and research and development (R&D).
• Support small and medium enterprises (SMEs).
• Encourage environmentally sustainable practices.
• Reduce the burden on low-income groups.

These incentives help attract capital, foster entrepreneurship, and align private sector activities with national development goals.