Taxation and Sustainable Development Goals

Salaudeen, Yinka Mashood (2024): Taxation and Sustainable Development Goals.

Abstract

This paper studied the interplay between taxation as a source of revenue (tax) and taxation as a tax system comprising of tax policy, tax legislation and tax administration and the Sustainable Development Goals (SDGs) of the UN. It also investigated the interaction of SDGs and the various components of a tax system. The paper adopted a library research design because of its theoretical nature and used mostly internet resources. The paper found that taxation can promote the attainment of all the 17 goals of Sustainable Development as a source of revenue and as a system can be used to attain these goals but can also be subverted by them. It also found that tax administration is the most important component of a tax system. Furthermore, findings showed that SDGs can affect all the components of a tax system. This paper, therefore, recommended judicious application of tax revenue and a strong and good tax system especially an effective tax administration that is perceived to be fair and equitable to be able to attain the SDGs.

• Item Type: MPRA Paper
• Language: English
• Keywords: Tax, Taxation, Eco-development, Appropriate Technology, Sustainable Development
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O50 - General

References

Adekambi, A. M, Shallie, A. D. & Olaniyi, A. A. (2002). Tax revenue and sustainable development in Nigeria: A disaggregated analysis. Global Journal of Arts, Humanities and Social Issues, 10(3); 43-52

Alhulail, I., & Takeuchi, K. (2014). Effects of tax incentives on sales of eco-friendly vehicles: evidence from Japan. Unpublished Discussion Paper No. 1412. Graduate School of Economics, Kobe University.

Avi-Yonah, R. S. (2006). The three goals of taxation. Tax Law Review; 60(1); 1 – 28

Besley, T., & Persson, T. (2014). Why do developing countries tax so little? Journal of Economic Perspectives, 28(4), 99-120.

Bhartia, H.T. (2009). Public Finance, (13th Ed), Vikas Publishing House, Pvt Ltd, New Delhi.

Bird, R. M. (2015). Improving tax administration in developing countries. China Tax Administration. 1(1), 23-45. Available at http:// jota.website/article/view/9

Blanclet, T, Chericall, L. & Gethin, A. (2019). Evidence for distribution and national accounts, 1980 – 2017. WID working paper 2019.

Borenstein, S. & Davis, L.W. (2016). The Distribution and Analysis of U.S. Clean Energy Tax Credit: Drawn, JR (2016) (eds.) The Policy and the Economy, Chicago, University of Chicago Press.

Buchanan, J. M. (1963). The economics of earmarking taxes. Journal of Political Economy 71(5); 457-469. www.journals.achieve.edu

Christians, A. (2019). Aligning Tax Rules with Sustainable Development: Why and How.

Chukwuemeka, E. E., Okechuku, E., & Uchechi, B. O. (2014). Foreign Aid to Nigeria and Domestic Obstacles: A Review of Anambra State Education Sector. African's Public Service Delivery and Performance Review, 52.

Committee of Experts on International Co-operation on Tax Matters (2018), Note by the Secretariat, E/C.18/2018/CRP.14.p.2

Daly, E.H. (1996). Beyond Growth. Boston: Beacon Press.

Debt Management Office. (2023, March 30). Nigeria's Total Public Debt Stock as at December 31, 2022. Retrieved from Debt Management Office Nigeria: https://www.dmo.gov.ng/debt/4233-nigeria-s-total-public-debt-stock-as-at-december-31-2022

DeSchutter, O. (2018). The international dimension of the right to development: A frost start towards inquiry accountability, Special Report of Human Right Council, Working Paper the Right to Development 19th Session. A/HNL/WG2/CRP:1).

Donaires, O. S, Cazarino, L. O., Celdana, A. C. & Libmi, L. (2018). Sustainable Development Goals and analysis of a Kybernetes, https://doi.org/10.1188/1c-10-2017-0401

Doumbia, D., & Lauridsen, M. L. (2019, October). Encompass: Fresh Ideas about Business in Emerging Markets. Retrieved from IFC: http://www.ifc.org/thoughtleadership

Du Bose, J.; Frost, J.D. Chamaeah, J.A. & Venegas, S.A. (1995). Sustainable development and technology. In Elons, D & Wilkinisin, D. (eds) Canterbury: Centre for Advance Engineering.

Du Pisani, J. (2006). Sustainable development: historical roots of the concept, Environmental Sciences, 3(2), 83-96.

Edwards, R. (2016). Mining away the Preston Curve. World Development, 78: 22-36.

Gadenne, l. (2016). Tax me but spend wisely, Sources of Public Finance and Government accountability, Warwick Economic research Papers, No. 1131. Available at:http://www2.warwick.ac.uk/fac/soc/economics/research/workingpapers/2016/twerp_1131_gadenne.pdf

Gaspar, V. L., Jaramilla, L. & Wingade, P. (2016). Tax capacity and growth: Is there a tipping point. IMF Working Paper, No.16.

Greening, J. (2015). Tax generation: key to ending poverty in Adidas Ababa financing for Development COnfrence 2015. http: www.for.uk/government/greening-tax-generation-they-to-ending-poverty

Halim, A. & Rahman, M. (2022). The effect of taxation on SDGs: evidence from emerging countries. Heliyon 8 No.512. http://doi.org/10.106/hepion/2022.e10512 ICC (nd). Tax and law UN’s SDGs retrieved from http://susistainabledevelopment.un.org

Ironkwe, U. I., & Nnaji, P. O. (2017). Tax incentives & microfinance business in Nigeria: A study of selected microfinance banks in River State. IOSR Journal of Economics and Finance, 6-36.

Joint SDG Fund. (2023). Joint SDG Fund. Retrieved from Joint SDG Fund: https://jointsdgfund.org/who-we-are

Kaldor, N. (1963). Will Undeveloped Countries form Tax? Foreign Affairs 41(2): 410-419.

Kouam, j. C., & Asongu, S. A. (2022). Effect of taxation on social innovation and implications for achieving sustainable development goals in developing countries: A literature review. International Journal of Innovation Studies, 259-275.

Klenert, D. & Mattauch, L. (2019). Reducing wealth inequality through wealth tax without compromising economic growth. Available at https://www.oxfordmartin,ox.ac.uk/opinion/viewer/433

Kirkby, J.; O'keef, P.; & Timberlake, L. (1995). Sustainable Development. London: TheEarthscan Reader.

Laffer, A. (2004, June 1). The Laffer Curve: Past, Present, and Future. Retrieved 2023, from The Heritage Foundation: https://www.heritage.org/taxes/report/the-laffer-curve-past-present-and-future

Long, C. & Miller, M. K. (2017). Taxation and the Sustainable Development Goals. Do good things come to thrive when tax money. Brief Note.

Mc Claughry, J. (1989). Preface in Small is Beautiful. Schumacher, E.F (eds). London: Harper Perennial.

Mebratu, D. (1998). Sustainability and sustainable development historical and conceptual review, Environmental Report Procurement Review 18(6); 493-520

Mojeed, A. (2022, July 27). African countries need $1.6 trillion to meet climate pledges by 2030 -Experts. Retrieved from Premium Times: https://premiumtimesng.com/news/headlines/545330-African-countries-need-1-6-trillion-to-meet-climate-pledges-by-2030-experts.html?tztc=1

Moore, M. 92007). How does taxation affect the quality of governace. ids working paper 37. Brihgton: International Centre for Tax and Development Studies. Available at http"//www2.ids.ac.uk/futurestate/pdf/wp280.pdf.

Moosavian, S. F, Borzuee, D., Zahadi, R & Ahamadi A. (2022). Evaluation of research and development subsidies and fossil energy tax for sustainable development using compatible equilibrium model. Energy, Science and Engineering 10; 3267-3280

Nerudora, D, Angel, D, Janova, J, Dobranschi, M, & Rozmechel, P. (2019). Tax system sustainable evaluation: A model for European Union Countries. Intereconomic 139-141

PCT (2018). 1st global conference of the Platform for Collaboration Tax on Taxation and SDGs. in New York.

Pearce, D.; Makandya, A; & Barbier, E.B. (1989). Blue Print for a Green Economy, London: Earthscan Reader.

Pilke, R, & Rasanen, P. (2018). Practicing or preaching linking taxation and Sustainable Development in EU foreign policy. European Affairs Review. 23(2) 203-222

Pirlot, A. (2019). A legal analysis of the mutual interaction between the UN SDGs and taxation forthcoming: Cecik Brokhus & Ferreas in Think (Eds). Tax Sustainability in the EU and International Countries,

IBED.Sarka, S. W., & Ibrahim, M. (2019). The role of taxation In national development from the inception of fourth republic in Nigeria. International Journal of Innovative Development and Policy Studies, 7(4), 66-76.

Presson, A, Pritz, N. & Nilsson, M. (2016). Follow-up and Means of Sustainable Development Goals: Argument vs Inesvtigation Review 25(1); 59-68

Schratzeristaller, M. (2015). Sustainable tax policy: concepts and indicators beyond tax ration. Revenue de 2’OFCE, 5(141); 57-77

Sealkopf, L. & Bastiaens, I. (2020). Achieving sustainable development goal 17: an empirical investigation of the effectiveness of aids given to boost developing countries' tax revenue capacity, International Studies Quaterly, 0, 1-14. doi10.1093/isq/sqa9069.

Sustainable Development Solution Network (SDSN) (2014). Principles for Framing Sustainable Development Goals, Targets and Indicators prepared by SDSN Secretariat.

Tamarappoo, R., Pokhrel, P.; Raman, M. & Francis, J. (2016). Analysis of the linkage between domestic revenue mobilisation and social sector spending. Washington D.C.; USAID. Available at http://pdf.usaid.gov/pdf_docs/PBAAE640.pdf.

Tax Justice Network (2020). Inequalities democracy and human rights. Available at https: tax-justice.net/topic/inequalities-and-democracy-and-human-rights

The UN Committee of Experts on International Co-operation in Tax Matters (2016). The role of taxation and domestic resources mobilization in the implementation of the Sustainable Development Goals, E/C 18/2018/CR p.19

Tryzna, T.C. (1995). A Sustainable World, Sacramento: IUCN United Nations (2014). Report of the International Taskforce on financing for development progress and projects. Available at https: development-finance.un.org/sites/report-IATE-2018.pdf.

United Nations Tax Committee. (2018). The role of taxation and domestic resource mobilization in the implementation of the sustainable development goals. Geneva: Committee of Experts on International Cooperation in Tax Matters.

United Nations. (2020). Long-term financing for sustainable development in Africa. Retrieved from United Nations Economic Commission for Africa: http://uneca.org

United Nations. (2022). Sustainable Development Report 2022. Retrieved from Sustainable Development Report: https://dashboards.sdgindex.org/

United Nations. (2023). United Nations Department of Economic and Social Affairs. Retrieved from SDGs: https://sdgs.un.org/publications?field_review_year_value=&field_publisher_value=&tid=All&goals=All

WCED, (1987). Our Common Future. London: Oxford University Press..

World Bank. (2023, January 15). World Development Indicators Database. Retrieved from World Bank: http://data.worldbank.org/data-catalog/world-development-indicators