Success Factors in Tax Digitalization

In emerging countries, digitizing tax payments and related processes can potentially raise an additional USD 300 billion in government revenues annually*. The amount represents a significant contribution towards addressing the growing funding gap threatening to push many of the Sustainable Development Goals (SDGs) out of reach.

The devastating social and economic impacts of COVID-19 have heightened many of the challenges that the SDGs are designed to overcome. This, in turn, has heightened the need for proven solutions to keep the SDGs within reach. Digitalizing tax systems is such a proven solution, and is now needed more than ever. To date, over 800 tax policy measures have been taken by more than 100 countries worldwide in response to COVID-19.

Tax digitalization will also demand the attention of governments when charting their recoveries from the COVID-19 pandemic. Digitalizing taxes can open doors to stronger financial infrastructures and more confident international partners, and can also greatly improve public services, and reduce the need for in-person tax transactions as economies recover.

* The data in the report is based on estimates prior to the COVID-19 crisis.