The Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme enables private companies to finance road projects and recover their investment through Company Income Tax (CIT) credits. While this policy may temporarily reduce direct tax revenue, improved road infrastructure can stimulate economic growth by lowering transport costs, attracting investment, expanding businesses, increasing VAT collections, and creating jobs. For long-term fiscal sustainability, a phased issuance of tax credits and careful implementation are essential to ensure that infrastructure-driven economic gains outweigh the short-term decline in government revenue. This article examines the scheme's impact on domestic revenue generation and offers policy recommendations for balancing infrastructure development with sustainable tax collection.
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