AUTHOR(S): Lucci P & Lally S
ABSTRACT: The section on 'What needs to happen to ensure progress reaches everyone?' is particularly useful in terms of domestic finance mobilisation as it clearly states that domestic public finance will be critical to achieve the commitment to 'Leaving no one behind'. It is important that ways in which domestic resources are mobilised do not undermine efforts to reach the poorest. Tax revenues form a significant proportion of sources of domestic public finance available to developing countries. Among direct taxes, research has identified that income taxes are commonly strongly progressive, although exemptions and evasion of these taxes can undermine their progressivity. In developing countries with large informal sectors, expanding revenues from income in part requires extending the reach of income taxes to informal and often poorer economic actors. Policies to pursue this goal therefore needs to be carefully designed in order to ensure that efforts to reduce poverty and reach the most disadvantaged are not undermined.