Tax for SDGs

Tax for SDGs

Project Summary

In 2021 UNDP launched “Tax for SDGs” – a new initiative to help countries leverage taxation and mobilize more domestic resources to make progress on the Sustainable Development Goals (SDGs). Through taxation, the UNDP’s Initiative helps developing nations strengthen their economic resilience against external shocks and equip national tax administrations and finance ministries with skills and knowledge to combat tax evasion and align their tax and fiscal policies with the SDGs for sustainable growth.

“Tax for SDGs” Initiative covered 25 countries in 2022, while the number of joined countries in 2023 increased substantially. Uzbekistan is one of the focus countries of the global “Tax for SDGs” project. Evidently, the Government of Uzbekistan initiated a comprehensive tax reform in recent years that is aimed at simplifying and improving taxation, improving the business environment and triggering economic growth by reducing the tax burden and streamlining tax administration.

“Tax for SDG” global project developed an assessment tool that helps the Ministry of Economy and Finance of Uzbekistan to identify ways to better align the tax system with the SDGs. Another key component of the project is to launch the first-ever Tax Inspectors without Boarders (TIWB) Program in Uzbekistan that is a joint initiative of UNDP and OECD implemented globally since 2015. Also, the project team has started activities to support national partners to achieve Gender Equality Seal corporate standards.

Main objectives

The main objective of the “Tax for SDG” initiative in Uzbekistan is to support the Government of Uzbekistan to strengthen the connection between development financing and taxation with the core outcome of ensuring the alignment of tax regimes, policies, and frameworks in Uzbekistan with Sustainable Developmental Goals.

 

Expected results:

  1. “Tax for SDG” initiative in Uzbekistan is strongly committed to achieve visible success in implementing TIWB Program, that has not been run in Uzbekistan before. TIWB mission will therefore help tax authorities to enhance the effectiveness of tax audits, that generate more revenues to fund SDG-related initiatives, improve of tax morale and strengthen social contract.

  2. While many tax administration processes are already digitalized, there is a space for further digitalization of tax services and “Tax for SDG” global experts will support national partners. Meanwhile, the project will help policymakers to align tax expenditures against SDGs and assess the impact and effectiveness of tax expenditures in achieving development results.

  3. Gender inequality is a problem for pretty much all countries in the world, and taxation can be an effective instrument in creating more gender-neutral economic outcomes for men and women, therefore “Tax for SDG” project will support Uzbekistan to promote and establish Gender Equality Seal standard with Ministry of Finance and Economy. Finally, the project aims to continuously support Uzbekistan policymakers and experts with participation in global discussions on taxation at the United Nations and other international platforms.