Coalition on Tax Expenditure Reform

The Coalition on Tax Expenditure Reform seeks to strengthen transparency, accountability, and effectiveness of tax expenditures, supporting governments in mobilizing domestic resources and increasing fiscal space for climate and development priorities.

About the Coalition

Governments around the world forgo around 25% of tax revenue globally each year through tax holidays, exemptions, deductions, and other incentives collectively known as tax expenditures. While these fiscal measures are often created to encourage investment or support specific sectors, their costs are rarely assessed, allowing them to persist often without clear evidence of effectiveness. These expenditures can quietly erode domestic resource mobilization, undermining funding for essential public goods such as health, education, infrastructure, and climate action.

Recognizing the growing importance of addressing these fiscal blind spots, five leading global research and policy organizations came together to launch the Coalition on Tax Expenditure Reform. 

The Coalition was officially launched at the Fourth International Conference on Financing for Development (FfD4) in Seville, Spain, in July 2025. It builds directly on this momentum, with the Compromiso de Sevilla calling for “enhanced oversight and management of tax expenditures” and providing a clear international mandate to improve transparency, accountability, and effectiveness in the design and reporting of these fiscal tools.

Panelists discuss on a stage, with a giant screen behind them showing someone asking a question
IISD and partners launch the Coalition on Tax Expenditure Reform at FfD4 in Seville

Our Work

We support governments, international partners, and civil society to better track, evaluate, and reform tax expenditures that no longer serve their intended purpose.

Through coordinated research, technical assistance, and policy dialogue, the Coalition seeks to:

  • Scale up research and technical assistance: Strengthen local capacity, address evidence gaps, and improve policy design, implementation, and reform of tax expenditures.
  • Increase knowledge sharing and peer learning: Bridge knowledge gaps, build skills, and spread good practices to support effective tax expenditure reform.
  • Provide integrated and holistic support: Strengthen cross-government coordination, build capacity across institutions, and ensure tax expenditures are effective and fiscally efficient.
  • Promote international engagement and advocacy: Influence global and regional fora, promote tax expenditure reform as a priority, and support coordinated international action.

About the Organizations Driving the Coalition

The Coalition brings together a group of organizations with complementary expertise in fiscal policy, sustainable development, and evidence-based reform:

Endorsing Countries

Since the launch in July 2025 at the Fourth International Conference on Financing for Development, governments have already endorsed the initiative, including Brazil, France, Guinea, Nigeria, Rwanda, Senegal, Spain, United Kingdom.

Interested in joining the Coalition? Contact us at [email protected] 

Logos of the participating organizations

Project details

Topic
Taxation