BRUSSELS: While fiscal consolidation was the key driver of tax reforms in the years following the global economic crisis, the main emphasis of recent tax reforms has shifted back to tax measures aimed at boosting economic growth, according to a new OECD report.
Tax reforms launched in 2015 were largely focused on boosting growth and were characterized by reductions in labour and corporate income taxes. This represents a significant shift from the post-crisis period, where a stronger focus on fiscal consolidation led governments to implement increases in labour taxes and value-added tax (VAT) rates.
The report also shows a move in some countries towards higher taxes on personal capital income, but only relatively limited moves toward reform of environmental and property taxes.
These are all areas where the OECD has previously identified scope for governments to raise additional revenues while supporting inclusive economic growth.
Major international developments in the area of taxation in 2015 are shown to have influenced tax policy reforms across the OECD.
