A Community of Practice to continue the discussion on Tax Expenditures

Although the ATI workshop series on Tax Expenditures (TEs) has concluded, a new platform is being set up to continue contributing to the global debate on tax expenditures.

The Addis Tax Initiative (ATI) recently wrapped up its regional workshop series on tax expenditures (TEs) in May 2024, with the final workshop held in Kathmandu, Nepal. This series, organised in partnership with the Council on Economic Policies (CEP) and the German Institute for Development and Sustainability (IDOS), ran from July 2022 to May 2024. Six workshops took place across three regions: West Africa, East Africa, and Asia.

These workshops brought together officials from ministries of finance, tax authorities, and parliaments. The goal was to support participants in building their skills and capacities, share knowledge with ATI partner countries, and create strong regional networks of TE experts.

Based on the high level of interest from the participants, a new Community of Practice (CoP) has been set up by the ATI together with CEP and IDOS on behalf of their joint initiative, the Tax Expenditures LabThe CoP on TEs seeks to serve as a platform that will allow participants from ATI partner countries – who might or might have not attended the mentioned workshop series - and other interested parties to continue discussing topics like estimating, evaluating, reporting, and reforming of tax expenditures. The CoP aims to pool the collective expertise of its members to improve how TEs are managed and governed in finance ministries, tax administrations, and parliaments.

TEs in Nepal

Participants at the ATI Regional Follow-up Technical Meeting on Tax Expenditures, 7-9 May 2024, Kathmandu, Nepal.

 

The CoP will hold regular virtual meetings which will include presentations from international experts and representatives from participant countries, followed by discussions and exchanges between attendees. The first meeting of the Community of Practice will take place on 24 October 2024.

To ensure the sessions focus on relevant topics, a brief registration survey has been sent out to participants in order to collect their input on the most important issues to cover, as well as to gather feedback on the format and expected outcomes of the meetings.

 

ATI partner countries make strides in TE reporting and governance

Since 2022, four ATI partner countries—Bangladesh, Georgia, Ghana, and Togo—have started reporting on tax expenditures (TEs), with Bangladesh crediting ATI’s support for their first TE report. Benin improved its reporting by providing data at the provision level and is one of the few countries to evaluate TEs, ranking in the top 10 of the Global Tax Expenditures Transparency Index (GTETI). Liberia and Uganda have made significant strides in TE governance, with Liberia creating a national TE unit and Uganda passing key legislation. Other countries like Nepal, Pakistan, Zambia, and Madagascar have also made notable progress in TE reporting and transparency, reflecting a growing commitment to improving tax expenditure governance across regions.

screenshot GTETI

Tax Expenditure Transparency at a Glance. Retrieved on 14/10/2024 from Global Tax Expenditures Transparency Index - GTETI

 

We hope the Community of Practice will continue fostering meaningful engagement on tax expenditures, driving further strides by ATI partner countries and beyond in enhancing TE transparency.

TEs Tanzania collage

Photos taken during the ATI Regional Follow-up Technical Meeting on Tax Expenditures, East Africa, 6-8 December 2023, Dar es Salaam, Tanzania.

 

To know the full picture, do not miss:

ATI Regional Workshop on Tax Expenditures, West Africa – Lagos, Nigeria, 27-28 July 2022.

ATI Regional Workshop on Tax Expenditures, East Africa – Nairobi, Kenya, 18-19 October 2022.

ATI Regional Workshop on Tax Expenditures, Asia – Manila, the Philippines, 1-3 March 2023.

ATI Regional Follow-up Technical Meeting on Tax Expenditures, West Africa – Accra, Ghana, 18-20 September 2023.

ATI Regional Follow-up Technical Meeting on Tax Expenditures, East Africa – Dar es Salaam, Tanzania, 6-8 December 2023.

ATI Regional Follow-up Technical Meeting on Tax Expenditures, Asia – Kathmandu, Nepal, 7-9 May 2024.