Taxation Role in Sustainable Development

Taxation Role in Sustainable Development

IŞIK, Hayriye

The concept of sustainable development is about ensuring that the costs of onegeneration’s activities do not compromise the opportunities of future generations. It stresses the long term compatibility of the economic, social and environmental dimensions of human well-being. There are tax aspects of various significances in these four dimensions, some of which are under the primary responsibility of developing countries. These are; (a) Providing a fiscal environment that is favourable to Foreign Direct Investment and international trade in developing countries, (b) At the international level, cooperation between developed and developing countries to ensure that developing countries get a fair allocation of tax base in relation to the Foreign Direct Investment they attract, (c) Helping developing countries to develop efficient and fair tax policies and tax collection mechanisms that allow their governments to effectively fund sustainable policy measures in the economic, social and environmental fields, and (d) At the international level and in particular in investors’ home countries, involving civil society by encouraging taxpayers and in particular MNEs(Multinational Enterprises) to behave in a responsible way when managing their taxes. The key challenge for for countries especially for developing countries is to establish a strong policy and institutional framework that will help developing countries to attract increased trade and investment and to ensure that these flows benefit their societies and promote sustainable forms of development. The most important features for a tax system in terms of sustainability would be: transparency in administrative decisions; stability of tax rules / reasonable certainty for taxpayers; and availability of fair jurisdictional recourses. This paper aims to investigate tax and tax system role on the sustainable development. Finally gives some detailed example for developing and developed countries

Conference or Workshop Item
PeerReviewed

2009-06

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