The OECD/G-20 Developing Country International Tax Mandate: Year 3

The G-20 is keeping a close eye on how developing countries are faring at the OECD’s inclusive framework.

Recommendation 4: Inclusive framework members should think about incorporating Working Party 9 on VAT and GST into the scope of work, given the importance of consumption taxes in developing countries.

Why is the OECD emphasizing VAT and GSTs? Because they’re a crucial part of developing countries’ tax revenue. For example, in Latin America, indirect taxes account for about 50 percent of the region’s total tax revenue.

Source: Forbes

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