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Enhancing the Effectiveness of External Support in Building Tax Capacity
Year of publication:2016
The World Bank, IMF, OECD, and UN have submitted recommendations to the G20 on how to strengthen the capacity of countries to build fair, efficient tax systems. The recently-formed Platform for Collaboration on Tax has released recommendations in a report titled “Enhancing the Effectiveness of External Support in Building Tax Capacity in Developing Countries” which present an ambitious agenda for development partners to support developing nations to strengthen their tax systems and realize their development objectives, as well as strive for achievement of the Sustainable Development Goals. Well-functioning tax systems allow countries to chart their own futures, pay for essential services, and build trust with their citizens.
The report finds that country commitment is vital to success in tax reforms and identifies five factors that provide an environment receptive to tax reform:
- assisting countries to develop a coherent revenue strategy as part of a development financing plan;
- coordinating effectively among providers of capacity development;
- making accessible a strong knowledge and evidence base;
- promoting regional cooperation and support; and
- strengthening participation of developing countries in international rule-setting.
A World Bank blog post summarises the key findings and recommendations from the report.