Investor Presentaiton
Free Trade Zones & Nigeria Tax Regime
Cost Benefit Analysis (CBA)
- Costa Rican Study:
- Ratio between NDB and expenses incurred to attract FDI and administer the
FTZs estimated at 69:1.
NDB from high-tech multinationals higher than non-high tech - confirming
official policy to attract FDI into high tech activities, which make more intensive
use of skilled workers.
- Comparative 2001 study showed Costa Rica more competitive than neighbors in
income tax exemptions, lagged behind in R&D incentives, land acquisition,
strategic partnership facilitation.
Competitive tax incentives may be offset by other countries' financial incentives
like grants, subsidies and credit facilities.
Costa Rican tax incentives not a cost because largely customs duty exemptions
(neutrality principle) and temporary relief from income tax. WITHOUT
THESE EXEMPTIONS, FIRMS MIGHT NOT HAVE COME TO COSTA
RICA.
Demand for labour, associated wages, pension contributions, consumption of
public utilities, acquisition of locally produced goods and services, licensing fees,
lease rentals are net revenues to the system.
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