The more stable, predictable and competitive our tax system, the more investment and jobs will follow
Business is very clear what it wants from tax policy: stability, predictability and competitiveness. In next week’s Budget, the Chancellor must try to keep to these fundamental principles
Melissa Geiger, Partner and Head of International Tax at KPMG in the UK, commented:
“The message for the Chancellor is keep it simple, provide clarity and certainty where possible, and above all, focus on growth.
“We know from our latest Tax Competitiveness Survey that businesses continue to prioritise long term stability and predictability over low tax rates when comparing the attractions of one jurisdiction with another.
“Business is facing an uncertain economic landscape, but if policymakers get these fundamentals right then investment and jobs will follow.
“Business values a tax system that operates to a plan. A business tax road map that provides clear direction in terms of policy would not only help business navigate economic uncertainty but also provide a way of measuring progress against specific policy goals.
“In addition, business will be hoping that the Chancellor uses tax policy as a lever for growth and investment in order to maintain the UK’s competitiveness as we approach Brexit.
“Sticking to the current plans to reduce the corporate tax rate to 17% by 2020 will help but won’t be the whole answer.
“Measures to simplify and improve innovation reliefs would be welcome. So would providing better help for infrastructure businesses which have seen a number of tax policies negatively impact them in recent years.”
“The message for the Chancellor is keep it simple and focus on growth.”
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