Tax Incentives and Investment
Publication | January 2024
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This brief analyzes how tax incentives are employed across Asia and the Pacific, looks at their effectiveness, and considers how they can best be used to encourage investment in activities with clear social benefits.
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The brief assesses the types of tax incentives commonly used in the region and explores their advantages and disadvantages. It draws on country-specific evidence and examines other factors that influence foreign direct investment. Outlining policy implications, it underscores the need to use tax incentives sparingly, embed them into law, and encourage countries to instead consider focusing their efforts on reinforcing their overall investment environment.
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