Tax Expenditures and Domestic Revenue Mobilisation

Co-organized with the German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) and the Addis Tax Initiative (ATI) as part of DIE’s series of “International Workshops on DRM”.

Register for the conference here.

  • Tax expenditures (TEs) are tax benefits that governments use worldwide to pursue various policy goals such as attracting investment, boosting innovation and fighting poverty. TEs are costly, as they lower government revenue and the tax liability of the beneficiary. The global average of tax revenues forgone over the period 1990-2020 is 3.8% of GDP, or 24.2% of tax revenue. Moreover, TEs are often ineffective in reaching their stated goals, and can be even damaging with regard to equality or sustainability. Yet, the lack of transparency in this area is striking: only 97 out of 218 jurisdictions have reported on TEs at least once since 1990. The quality, regularity and scope of such reports are highly heterogeneous and, in many cases, lag significantly behind minimum standards.

    It is against this background that DIE and CEP have launched the Global Tax Expenditures Database (GTED) in June 2021. The GTED (www.GTED.net) is the first database providing timely and consistent information on TEs on a global scale. It is based on official information published by national governments worldwide from 1990 onwards.

    ATI acknowledges the relevance this topic holds for member countries and the international community in general. TEs have a significant impact on countries’ ability to foster domestic revenue mobilisation (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.

    Against this background, this joint DIE-ATI-CEP workshop brings together scholars, government officials, representatives from international organizations and other experts to discuss ongoing research and initiatives and assess the policy implications of tax expenditures.

    There will be a simultaneous interpretation at the workshop (French-English / English-French), and we look forward to welcoming you in November.

    For questions or further information, kindly write to [email protected]

  • Tuesday, 9 November, 2021
    13.00-14.00Welcome

    Introduction to the Workshop
    Christian von Haldenwang (DIE)

    Opening Address
    Sanjeev Gupta (Center for Global Development)
    14.15-16.00Panel 1: Tax Expenditures and Development

    Are Tax Expenditures Good or Bad for Development?
    Christian von Haldenwang (DIE) / Agustín Redonda (CEP) / Flurim Aliu (CEP)

    Tax Expenditures of the Government of India, 2006-07 to 2019-20
    Sacchidananda Mukherjee (NIPFP, India)

    Practical Challenges and Lessons Learnt from TE Reporting in Rwanda & Uganda
    Hazel Granger / Kyle McNabb / Harshil Parekh / Solomon Rukundo (ODI, UK & Revenue Authority, Rwanda)
    Wednesday, 10 November, 2021
    13.00-14.30Panel 2: Challenges to Tax Expenditure Reform: Country-level Experiences

    Ethiopia: Main barriers for the Estimation and Reporting of Tax Expenditures
    Habtamu Alamayo Farada (MoF, Ethiopia)

    Madagascar: De L’évaluation aux Enjeux des Dépenses Fiscales
    Tantely Ravelomanana (MEF, Madagascar) - tbc

    North Macedonia: Tax Expenditure Report
    Jordan Simonov / Zoran Gligorov (MoF, North Macedonia)

    Sierra Leone: Multi-Stakeholders’ Oversight on Tax Incentives
    Oxfam Sierra Leone
    14.45-16.00Panel 3: Challenges to Tax Expenditure Reform: Regional Perspectives

    Tax Expenditures in West Africa: The need for a Regional Evaluation
    Jean-François Brun / Gérard Chambas / Jules Tapsoba (Université Clermont Auvergne, CERDI, France)

    ADB Support on Tax Expenditure Reform
    Yuji Miyaki (ADB, Philippines)

    Coordination, Evidence and Accountability: Reforming the Governance of Tax Expenditures in Latin America
    Alexandre Ciconello / Fariya Mohiuddin (IBP, Brazil)
    Thursday, 11 November, 2021
    13.00-14.45Panel 4: Tax Competition and International Tax Reform

    The Worst Form of Tax Incentives: CIT Exemptions
    Grégoire Rota-Graziosi / Alou Adesse Dama / Fayçal Sawadogo (Université Clermont Auvergne, CERDI, France)

    Growth Effects of Tax-Incentivized FDI
    Sabine Laudage / Jakob Schwab (DIE, Germany)

    The International Tax Reform Agenda (Pillar Two) and its Implications on the Future of Tax Incentives
    Suranjali Tandon (NIPFP, India)

    Global Tax Reform and Tax Expenditures : A Prospective Analysis
    Seydou Coulibaly (AfDB, Côte d’Ivoire)
    14.50-15.50Roundtable: Approaches to Tax Expenditure Reform

    Moderator:
    Stephanie Johnston (Tax Notes) - tbc

    Participants:
    Santiago Díaz de Sarralde (CIAT, NTO)
    Nara Monkam (ATAF) - tbc
    Steve Rozner (USAID)
    Juvy Danofrata (Director, DoF of the Philippines)
    Agustín Redonda (CEP)
    15.50-16.00Closing Remarks

    ATI, DIE, CEP