Fossil Fuel Tax Expenditures. Data Gaps and Reporting Guidelines


Tax expenditures (TEs) make up one of the largest components of fossil fuel subsidies (FFSs) worldwide. Yet, despite their significance, they remain underreported.

This discussion note presents the data gaps uncovered through a search of the Global Tax Expenditures Database (GTED) for fossil fuel-related TE data. It focuses on the 39 countries not covered by the OECD Inventory of Support Measures for Fossil Fuels that provide official and publicly available TE data as stored in the GTED. The report identifies five key dimensions for improvements, ranging from data granularity to continuity in reporting methodologies over time. For each dimension, the report presents evaluation indicators as well as best practice guidelines for policymakers who wish to conduct a self-evaluation of their tax expenditure systems as well as international and regional organizations or local stakeholders who wish to assess the quality of government reporting on fossil fuel-related TEs (FF TEs).