Hong Kong, China’s tax system and prudent approach to fiscal policy are two pillars of its success. Despite this, aging and climate change will require tax reforms to ensure fiscal sustainability and competitiveness.
Governments in Asia will need to walk a fine line between securing adequate revenues, supporting displaced workers, and promoting growth and investment, in response to tax challenges posed by rapid robot deployment.
The tax administration of the future will be digitized and use new technologies which revolutionize tax processes, enhancing speed and accuracy.
Tax revenue can be raised in a fair and reasonable way to provide much-needed public services and support the poor and disadvantaged still reeling from the pandemic.
Extending a value added tax (VAT) to more effectively capture e-commerce and digital services could yield significant short-term revenue and help ensure a level playing field between domestic and foreign players.
Decreased tax revenues and increases in public spending due to COVID-19 make it imperative for developing Asian countries to mobilize private capital for the vast investments needed to achieve the SDGs.
COVID-19 has brought unprecedented economic and development challenges but it also offers opportunities for financing solutions to help achieve the Sustainable Development Goals.
Collecting taxes more efficiently allows countries to improve their balance sheets after the pandemic while promoting business investment and sustainable economic growth.
The COVID-19 pandemic has created opportunities for a fairer, more robust and more efficient tax revenue and spending system.
On the Road to a Speedy Economic Recovery: A Broad-Based Tax System is Key to Solomon Islands’ Pandemic Response
A more sustainable revenue base for the Pacific Island nation could better manage changing economic conditions and the impact of shocks such as COVID-19.