A Strategic Lever Confirmed by the OECD Report of 11 September 2024
The OECD report released on 11 September 2024 reaffirms that Value Added Tax (VAT) remains a key instrument of fiscal policy for governments worldwide. According to the report, VAT continues to serve not only as a major source of public revenue, but also as a flexible policy tool capable of influencing economic and social behaviours.
The report highlights that, although targeted exemptions still apply to essential goods and services : such as food, energy, and healthcare — there is a gradual shift away from temporary VAT reductions.
It also notes the steady growth of related taxes, including excise duties on tobacco, alcohol, and sugary drinks, alongside the expansion of environmental taxation. Together, these measures illustrate a more diversified and targeted fiscal approach, designed to integrate public health and environmental objectives into national tax policies.
