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A fundamental method for nations to produce public revenues that enable them to support investments in human capital, infrastructure, and the provision of services for citizens and businesses is through the collection of taxes and levies.
The finance gap for developing nations to achieve the Sustainable Development Goals is estimated to be roughly $2.5 trillion yearly based on preliminary analyses. An important portion of this finance gap will need to be filled by greater private sector sustainability investment, which calls for suitable tax policies to generate the required price incentives. However, developing nations that are most in need of funding, such as FCSs (fragile and conflict-affected states), frequently confront the most difficult obstacles to tax collection.
Particularly in light of the COVID-19 problem, taxes have a crucial role to play in ensuring sustainable and fair growth. This is especially true through initiatives like "greening" tax systems and combating tax evasion and avoidance.
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