Major international organisations, including the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations and the World Bank Group on Wednesday called on all governments to strengthen and increase the effectiveness of their tax systems to unlock domestic resources towards achieving the Sustainable Development Goals (SDGs) and promote economic growth.
Additionally, IMF Managing Director Christine Lagarde said: “Funding the SDGs is an economic and ethical imperative with major implications for taxation.
Domestic resource mobilisation presents a challenge for developing countries, who need to raise tax revenue of at least 15 per cent of GDP to be able to provide basic services, such as better road infrastructure, health care and public safety.
At the same time, more advanced economies need to pay greater attention to spillovers from their tax policies and step up their support for stronger tax systems in developing countries.
“Effective taxation is essential to promote a more inclusive and sustainable growth. It is fundamental to making globalisation work for all.
During conference ministers and vice-ministers of finance as well as tax authorities and senior representatives from civil society, the private sector, academia, regional and global organisations will focus on key directions needed to strengthen tax policy and administration that is more sustainable and inclusive.
“Fair and efficient tax systems, combined with good service delivery and public accountability, build citizens’ trust in government and help societies prosper,” said the President of the World Bank Group, Jim Kim.
The conference, organised by the Platform for Collaboration on Tax (PCT), provides a unique opportunity to address relevant topics to end poverty, protect the planet and ensure prosperity for all.
The conference aims to provide guidance to countries and other stakeholders on how to better target tax efforts to achieve broader development goals.
The conference will conclude with a statement of commitments from PCT members, which will inform a future agenda on tax policy and administration.
The Platform for Collaboration on Tax is a joint initiative of the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations, and the World Bank Group to strengthen collaboration on domestic resource mobilization (DRM).