Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Tax authorities can play a key role in promoting sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all by implementing policies and measures that:

1. Foster a conducive tax environment: A well-designed tax system can stimulate economic growth and employment creation, by creating a predictable and stable tax environment, reducing tax distortions and avoiding excessive tax burdens on businesses.
2. Invest in human capital: Tax authorities can support the development of human capital by providing incentives for employers to invest in training, education and skills development, and by reducing the tax burden on low-wage workers.
3. Encourage innovation: Tax authorities can incentivize innovation by providing tax credits or deductions for research and development (R&D) activities, or by implementing patent boxes that reduce the tax burden on income derived from patented inventions.
4. Promote small business growth: Tax authorities can support small businesses and entrepreneurs by providing tax credits, exemptions or deductions for start-up expenses, and simplifying tax compliance procedures for small businesses.
5. Address income inequality: Tax authorities can use the tax system to address income inequality by implementing progressive tax structures, and by providing tax credits or deductions for low-income earners, or those who invest in socially responsible activities.
6. Combat tax evasion and avoidance: Tax authorities can increase revenue collection and enhance tax fairness by strengthening tax administration, improving tax compliance and reducing opportunities for tax evasion and avoidance.
7. Invest in infrastructure: Tax authorities can support economic growth and job creation by investing in infrastructure, such as roads, bridges, schools, and hospitals, through targeted tax incentives or subsidies.

Overall, tax authorities can play a crucial role in promoting sustainable economic growth, employment creation, and decent work for all by designing and implementing tax policies that are aligned with the broader development objectives of their country.