The role of international tax cooperation in achieving the sustainable development goals

Taxation is a critical source of domestic revenue for all governments. This is particularly the case for developing countries, which generally raise far less revenue from tax, relatively speaking, than developed countries. Developing countries struggle to raise sufficient revenue to provide basic services such as road infrastructure, healthcare, and public safety. Research indicates that revenue equivalent to at least 15% of GDP is necessary to finance these basic services, but in almost half of the world’s 75 poorest countries, tax revenues are below this threshold. Revenue generation is impacted directly by tax evasion, which is a particularly acute problem in developing countries. Strengthening tax policy and administration, and providing tools to fight tax evasion, therefore takes centre stage in the Sustainable Development Goals (SDGs) framework.

Sustainable Development Goals:

Gender Equality

Reduced Inequalities

Partnerships for the Goals