This Blog was originally published by TaxDev – The Center for Tax Analysis in Developing Countries
On 6 February 2023, the TaxDev team and almost 20 officials from ministries of finance and revenue authorities in Ethiopia, Ghana, Liberia, Rwanda and Uganda gathered in Kampala for our three-day workshop on tax expenditure analysis and reporting.
Tax expenditure reporting is vital to ensure that tax reliefs – exemptions, deductions, reduced rates and deferrals that benefit particular sectors, businesses or individuals – can be scrutinised in the same way as public spending. Without information on the provisions that exist and their cost, how can parliaments and wider society even start an informed debate about whether this is money well spent? And knowing the costs of these provisions is the first step in a more comprehensive analysis of their effectiveness, impacts and potential wider costs and benefits.
The workshop provided an introduction to the principles and practice of tax expenditure analysis and reporting, with lively debate and practical exercises showing some of the complexities involved in analysing trade tax, VAT, and personal and corporate income tax expenditures.
Read the full article here.