Tax incentives—various forms of preferential tax treatment—have been widely used by countries to encourage desired activities and behaviors. However, while tax incentives can be effective in promoting specific goals, they can also erode tax revenue, create unintended distortionary and distributive consequences, and pose governance challenges. Policy makers, therefore, face complex decisions especially in light of ongoing and fundamental changes in the international tax landscape.
To support these decisions, the Platform for Collaboration (PCT) has just published a set of high-level principles, and has launched a public consultation on the draft document.
To maximize the usefulness of the principles, the PCT is seeking for responses to the following questions:
- Do you find the principles and remarks presented in the document appropriate and well-balanced in terms of content and coverage? If so, please explain why. If not, please provide any suggestions you may have for refining the document.
- The document references additional material to help apply the principles. Given this, are there areas where you feel more guidance is needed?
- What kind of support might countries require to effectively apply the principles?
- Do you have any recommendations to refine the principles and remarks, given your experiences with tax incentives (either positive or negative)?
- Do you have any other comments or suggestions?
Responses should be sent to [email protected], with a copy to [email protected].
The deadline for submission is February 11th, 2025. All responses will be publicly posted on the PCT website.