Tax Policy for Inclusive Growth after the Pandemic

This note provides guidance on tax policy reforms after economies have recovered from the COVID-19 crisis and fiscal consolidation becomes imperative. The focus is on identifying tax measures that can boost revenue mobilization in a way that is both inclusive and growth friendly. The note concludes that countries have multiple options to enhance the effective progressivity of their tax systems, reduce key tax distortions to growth, exploit corrective taxes to supports a green recovery, and adjust tax designs to cope with an increasingly digitalized economy after the pandemic.

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