Taxation and domestic public resource mobilization

Taxes are central to fiscal policy design and budget execution. They serve as agents to deliver public goods; redistribute wealth; achieve societal equity; create incentives to influence production, consumption, and investment patterns; and act as automatic stabilizers for the economy.

In 2015, the Arab countries vowed to improve the fairness, transparency, efficiency and effectiveness of tax systems as committed through the Addis Ababa Action Agenda. Several cascading tax reforms have been enacted since then, but for the most part, they fell short of improving tax equity and spurring the desired increase in public revenues.

Our approach

ESCWA seeks to address the underlying factors that have undermined the integrity of Arab tax systems and have led to the erosion of the Arab tax base, be they associated with tax abuses, excessive tax incentives, the proliferation of tax-based illicit flows or the slippage of productive capacities into informality. ESCWA is also providing evidence-based guidance on the potential implications arising from the global corporate tax reforms and the tax challenges arising from the digitalization of the economy on Arab subscribers, and seeks to safeguard Arab tax sovereignty and ensure that Foreign Direct Investments are not being round tripped through the region and that Multi National Companies are paying their fair share of taxes, commensurate to the value and profits they reap from the region.

Our partners

Ministries of: Finance, Planning, Economic Development, International Cooperation and Central Banks.

Our activities

ESCWA prepares studies on the different aspects of taxation and domestic public resource mobilization in the Arab region. It holds meetings to translate knowledge into concrete actions and capitalize on regional and international experiences.