This new research from the Empowering CSO Networks in an Unequal Multi-polar World programme focusing on three nations (Brazil, Indonesia and South Africa), looks in depth on how an effective tax policies can be used by governments to tackle the ever widening inequality gap. According to evidence gathered, the report shows that the revenue performance and collection of all three countries lags far behind compared to that of the developed countries.
The present study looks in depth at the prevailing tax policy in each country to measure how progressive their tax systems are, using examples of developed countries as a benchmark for comparison. It further investigates the composition of revenues by type of tax in order to indicate whether a state has a progressive tax system in place and whether all segments of society are being taxed equitably.
Further, it examines levels of tax avoidance and tax evasion in the countries concerned and examples of the most frequently employed tax avoidance schemes.The paper then evaluates the extent to which developing countries benefit from global initiatives to combat harmful tax practices and whether such initiatives allow these countries to expand their tax bases while also maintaining a competitive investment climate.
Finally, based on this analysis, the paper draws conclusions and attempts to formulate recommendations on taxation for these three emerging economies, in the context of both domestic policy and global participation, that would help them to reduce inequality while achieving sustainable growth and prosperity.
To read the full report, please visit Tax Policy and Inequality Report