Inputs to the Outcome Document

Asia-Pacific experience suggests a central role of rationalized tax structure, strengthened tax administration, and reduced wasteful tax exemptions in episodes of swift tax revenue enhancement. Nevertheless, to achieve greater and sustained results in the longer term, broader socioeconomic progress and improvements in public governance are equally indispensable. Meanwhile, better exploration of tax potentials of direct income and wealth taxes and of the region’s booming real estate markets will be key for further public revenue enhancement.

Illicit financial flows (IFFs) significantly drain resources, with trade-IFFs alone accounting 5-30% of total goods trade in pilot countries, financing crime, exacerbating inequalities and instability. Effective action requires data-informed analytics, whole-of-government approaches and stronger international cooperation for common tools and technologies. All countries need evidence-based policies to address IFFs, allowing crime prevention rather than costly corrective measures. FfD4 outcome should prioritize these strategies, resourcing data reporting and establishing a platform for collaboration and methods development.