Supporting fair tax systems

An analysis of EU aid to domestic revenue mobilisation

Fecha de publicación: 30 Abril 2020
Authors: Chiara Putaturo (Oxfam), Lis Cunha (Action Aid)

Domestic Revenue Mobilisation (DRM) is key for governments to fund their own development goals, finance gender-responsive public services such as health and education and to reduce economic, social and gender inequalities.

Donor countries and institutions can contribute to strengthening DRM in developing countries through development cooperation aid and the European Union is the largest provider of aid to DRM amongst the donors.

This joint Oxfam and Action Aid report examines how the EU’s aid to DRM is disbursed looking at what we consider essential for a good quality DRM project: country and regional ownership of DRM, fairness, inclusiveness and local empowerment. Essentially: more revenue collected in a more progressive way, under a robust and inclusive process locally.

While the EU is leading the way when it comes to the quantity of aid it provides towards domestic revenue mobilisation, there is significant room for improvement when it comes to the quality of the aid provided.

Although the research was carried out before the COVID-19 pandemic, the recommendations are even more relevant in the coronavirus emergency and recovery phase, as countries from the Global South need revenues to rebuild their economies and lay the foundations for stronger universal public health systems.