The German Development Institute (DIE/GDI), in cooperation with the Addis Tax Initiative (ATI) and the Council on Economic Policies (CEP), will host a virtual workshop on tax expenditures and domestic revenue mobilisation (DRM) from 9 to 11 November 2021, from 13:00 - 16:00 UTC+2. There will be a simultaneous interpretation, French-English / English-French, at the workshop.
The series “International Workshops on DRM”, organised by DIE since 2011, brings together scholars, government officials, representatives from international organisations and other experts to discuss ongoing research and policy initiatives in specific areas of taxation, and assess their policy implications. It is designed to build bridges between academic research and development policy.
This year’s workshop will explore the relevance of tax expenditures for DRM. Tax expenditures have a significant impact on countries’ ability to foster DRM and, ultimately, attain the Sustainable Development Goals (SDGs). They often endanger the transparency of national budgets and policies if not monitored closely and assessed consistently. In light of its mission to promote development cooperation towards achieving the SDGs, the ATI agreed to “apply coherent and coordinated policies that foster DRM”. Commitment 3 of the ATI Declaration 2025 states: “We will improve tax transparency by publishing tax expenditures regularly to facilitate cost-benefit assessments, ultimately helping to reduce wasteful tax expenditures, improving taxpayers’ trust, and creating a more level playing field for all types of businesses. We will improve inter-agency cooperation on tax expenditures and foster the coordination of granting tax concession activities.”
The workshop will build, among others, on data of the recently launched Global Tax Expenditures Database (GTED) - the first database providing timely and consistent information on tax expenditures on a global scale, developed by CEP and DIE - and on ATI members´ experiences in improving transparency, reporting and promoting reforms to rationalise tax expenditures.
Key topics to be discussed include:
- The state of tax expenditure reporting;
- Experiences with setting up / improving tax expenditure reporting in individual countries;
- Main barriers for the estimation and reporting of tax expenditures;
- Tax expenditures in a context of informality;
- Tax expenditures as an instrument of (harmful) tax competition between countries;
- Bringing tax expenditures into the current debate on international tax reform;
- The role of regional tax organisations & the Network of Tax Organisations (NTO);
- Tax expenditure reform in a post-COVID-19 world;
- Decision-making processes to promote reforms & political economy challenges in the context of rationalising tax expenditures.
ATI members are invited to participate and share their experiences. A call for contributions for the workshop was open until 20 September 2021.
The workshop shall be the trigger of a series of regional events to be held in 2022 with ATI member countries in Africa, Asia and Latin America.