The report published by the International Development Committee highlighted the importance of tax collection in developing countries, and recommended that the UK’s aid programme should increase its focus on supporting tax authorities.
This is equally valid for all forms of taxation, including VAT, personal income taxation and corporate taxation. It is also essential that taxes are paid on a fair and equal basis by local companies and individuals as well as foreign investors
The UK already does work in this area; for example, the Department for International Development (DFID) provided a very successful programme of support to the Rwandan Revenue Authority over a ten-year period. But the International Development Committee recommends that this sort of work should be given higher priority within the UK’s future aid programmes.
Oral Evidence Sessions:
Tuesday 28 February 2012: Watch session
Tuesday 24 April 2012: Watch session
Tuesday 15 May 2012: Watch Session