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Collect more – and more fairly?

The European Commission’s support for Domestic Resource Mobilisation in developing countries

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Long-term funding is needed in developing countries to provide quality, gender-responsive public services. These services are essential for countries to meet their human rights obligations.

Domestic resource mobilisation (DRM), with tax at its centre, is the key to securing sustainable, democratic financing. Progressive and effective tax systems can raise the funds needed for key public services. This can allow governments to deliver on human rights commitments to their citizens. Progressive tax can also contribute to the fight against economic, social and gender inequalities.

This briefing paper looks at the EU’s commitments to supporting DRM in developing countries. We also look at how this works in practice, through development programs and policy. Is the EU living up to its promises?

We offer a critical perspective and a set of recommendations to the European Commission in relation to its budget support programs and global partnerships on DRM. We also give recommendations on how to improve policy coherence when it comes to tax. The EU can and should lead by example in the fight against tax avoidance.