CHAPTER ONE
INTRODUCTION
The mode by which economic and industries can be effectively and efficiently developed have a problem. As a result, government charges less tax in order to encourage investments and activities in those areas which helps to improve the production capabilities, active economic growth as well as allocation of resources in social desirable manner. Tax incentive is the use of government spending and tax policies to influence the level of national income. Taxation itself is the process or mean by which communities or group are made to contribute part of their income for purpose of administration of the society. This measure will encourages new enterprises to spring up. Thereby reducing profit task which encourages production to curb unemployment. Government should provide employment opportunities, to improve our economy. The government infrastructure facilities such as roads, water supply, electricity hospital etc more reallocate resources to the public sector charging mix input. By borrowing rather than taxing, the federal government has a better chance of expanding investment spending which is essential to enlarge our production possibilities and attaining increase in standard of living. In order hand, these incentive can be targeted on low income earners. This will normally increase their saving which is necessary for higher investment. Tax incentive also create employment opportunities people which help to fight depression, inflation thereby increasing distribution of income and wealth.
