Global coalition launches consultation on voluntary minimum standards for tax expenditure reporting

Tax expenditures are costly. Governments worldwide forgo close to a quarter of their tax revenues through tax expenditures. In some countries, the costs of tax expenditures far exceed spending on health or education. While these measures can support investment, economic transformation, and social policies, they are often insufficiently scrutinized. A lack of reliable information on costs, beneficiaries, and impacts makes it difficult for governments to assess whether specific measures are achieving their intended objectives and should be maintained, reformed or completely removed.

As governments face tight fiscal space, rising debt, and growing demands for investment in development and climate priorities, tax expenditure reform is an important opportunity to strengthen domestic resource mobilization.

The consultation draft Voluntary Minimum Standards for Tax Expenditure Reporting: What Are They and Why Are They Important proposes voluntary standards to publish regular, comprehensive, and accessible information on tax expenditures and to ensure that these reports are integrated into national budgets. The standards draw on the Global Tax Expenditures Transparency Index, and on years of experience by COATE partners working on tax expenditure reporting across countries. They seek to set a practical baseline that governments at any level of capacity can adopt.

Tax breaks are a form of spending through the tax system but often receive far less scrutiny than direct public spending. Better reporting helps governments, parliaments and citizens understand who benefits, what these measures cost, and whether they are delivering value. These voluntary minimum standards are intended to provide an important, and manageable, step towards more transparent, accountable and effective fiscal policy. 

Hazel Granger, Senior Research Fellow, ODI Global

COATE invites feedback from governments, international organizations, researchers, civil society organizations, and other stakeholders. Input received will help shape the final set of principles and indicators, which will be published later this year.

The consultation document and guiding questions can be found below using the link or QR code.

The consultation is open until September 30, 2026. Stakeholders are invited to submit comments to tax@iisd.org.

About the Coalition on Tax Expenditure Reform

COATE is a global initiative led by the Council on Economic Policies, German Institute of Development and Sustainability, the International Centre for Tax and Development (ICTD), International Institute for Sustainable Development (IISD), and ODI Global. The coalition was launched as part of the Sevilla Platform for Action following the Fourth International Conference on Financing for Development and is endorsed by several governments and organisations.