| THE
two-day G20 Summit, which ended here on Friday, has unveiled an action
plan to boost economic activity and job creation and support global
recovery.
Dubbed
‘St Petersburg Action Plan' the Plan incorporates specific tax and
non-tax initiative and commitments by member countries.
Brazil,
for instance, will support its R153 billion (USD 71 billion) Logistics
Investment Program support with tax incentives and innovative financing
initiatives. The Program, with a time horizon of 5 years, has been
conceived to tackle bottlenecks, increase competitiveness, create jobs
and promote growth through Public Private Partnerships.
France
will implement as planned by January 2014 an increase of the
Competitiveness and Employment Tax Credit, aimed at reducing labour
costs. France will also launch a second phase of the Invest for the
Future Program, and will continue to improve financing conditions for
firms, in particular for SMEs, through a better orientation of savings.
Korea
will promote venture businesses by enhancing tax incentives, providing
financial support and creating funds, and ease regulations that hamper
corporate investment.
China
will accelerat e the pilot project to replace its business tax with a
VAT, which reduced over 40 billion yuan of tax as part of a 300 billion
total structural tax cut in 2012. This project was extended to other
sectors in August of this year .
The
U.K. will take action to reduce the burden on businesses by
accelerating the reduction in the corporation tax to 20% by 2015 and
support small businesses through an annual Employment Allowance of up to
£2,000 from April 2014.
As
put by the G20 Leaders, “Strengthening growth and creating jobs is our
top priority and we are fully committed to taking decisive actions to
return to a job rich, strong, sustainable and balanced growth path.”
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