Tax Policy Innovation and Financial Inclusion

Abstract

The core argument in this chapter is that efficiency gains from the increased adoption of digital technologies have reshaped fiscal policy through innovations in how information on public revenue is collected, processed, shared, and acted upon. However, while these innovations have drastically transformed fiscal policy formulation and implementation, existing institutional and capacity constraints mean there is more work to be done. Multilateralism and shared responsibility are needed to address the issue of revenue losses to tax havens and secrecy-based jurisdictions. To enable Africa to reap more proportionate benefits from cross-border trade and investment transactions, policy innovation in the tax domain is in order. In the final analysis, this turn of events has implications for countries with a competitive advantage in tax havenry.