Tax policy has played a central role as governments sought to shield households and businesses from the impact of decade-high inflation levels, according to a new OECD report.
Tax Policy Reforms 2023 describes tax reforms announced and enacted in 2022 across 75 jurisdictions of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, including all OECD countries.
As energy and food prices rose steeply during 2022, countries moved quickly to support households and businesses by providing temporary fiscal support – including cuts to value added taxes (VAT) and excise duties – and by adjusting tax brackets, allowances and credits within personal income tax and social security contribution regimes.
Many also enacted VAT reforms to achieve more effective taxation of cross-border digital trade.
Source: OECD
