A review of critical issues on tax design and tax administration in a global economy and developing countries

Governments from developing countries have long depended on revenue from foreign aid but the post-2015 international agenda on financing for development has focused more attention on the importance of domestic-resource mobilization (DRM). In particular, the new framework aims to promote reforms that have the potential to improve government tax revenue in Low Income Countries (LICs). The focus on LICs is motivated by the huge resource gap required to finance development needs in these countries. Moreover, improving the tax system is expected to generate indirect long-term gains. For instance, a well-functioning tax system is expected to enhance state building and strengthen the state-citizen relationships. Whereas increasing tax revenue is expected to be beneficial for LICs, the way this can be effectively achieved is, however, not clear. The issue here is how and whether one can increase tax revenue in LICs and at the same time respect a number of principles of efficient tax design in a globalized economy? 

The presentation of the study will be followed by Q&A. If you would like to attend, please confirm your presence to Diane Ceri, Diane.Ceri@diplobel.fed.be.

Slides