Fossil Fuel Tax Expenditures. Data Gaps and Reporting Guidelines

Flurim Aliu and Agustin Redonda | 21 February 2023
Fiscal, Discussion Notes | Tags: Energy, Fossil Fuel Subsidies, Tax Expenditures

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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).

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Flurim Aliu

Flurim Aliu is a Fellow at CEP where he focuses on fiscal policy. He is co-leading the Global Tax Expenditures Database (GTED) project, a joint initiative between the CEP and the German Institute of Development and Sustainability (IDOS). He previously worked at the World Bank, where he contributed to policy research at the Infrastructure Chief Economist’s office. Flurim holds an MA in International Commerce from Seoul National University in Korea and a BA in Political Science from Georgia Gwinnett College in the United States.

Agustin Redonda

Agustin Redonda is a Senior Fellow with CEP where he focuses on fiscal policy. Prior to that he has been a research and teaching assistant with the Economics Department (IdEP) of the University of Lugano (USI). He also worked with the Organisation for Economic Co-operation and Development (OECD), as well as for the National Plan to Reduce Informal Activity (PNRT) at the Ministry of Labour, Employment and Social Security (MTSS) in Argentina.

Fossil Fuel Tax Expenditures. Data Gaps and Reporting Guidelines

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G7 Countries Must Urgently Phase Out Fossil Fuel Subsidies

Domestic Revenue Mobilization and Tax Expenditures in Developing Countries

Tax Expenditures and the Environment: Strengthening the Spotlight

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