Social protection, taxation and inequality

Social protection and tax policy are commonly examined separately, yet they are strongly linked. Tax revenue levels and ‘mix’ matter to the resources available for social protection financing and their sustainability over time. They also matter to the net incidence and distributional impact of fiscal policy. If poverty and inequality reduction are central public policy concerns, then a more careful consideration of taxes and transfers and the ways in which they operate jointly is warranted.

This event brings together social policy and tax experts to discuss new work on the poverty and inequality impact of taxes and transfers in developing countries and the implications of recent trends in tax policy for social protection financing. It is organised in two sessions. Session 1 will discuss the evidence on the distributional impact of taxes and transfers and related methodological and data requirements, with a focus on the issues that are specific to carrying out distributional analysis in developing country contexts. Session 2 will include a discussion of recent trends in tax revenue and their implications for social protection financing.