United Nations University International Institute for Global Health Briefing Paper - Tax systems and policy: Crucial for good health and good governance

This briefing paper highlights the critical role of tax policies and systems in advancing equitable and improved health. It explains how tax policies and systems perform five important functions that act as the bedrock for any flourishing society. These five functions are described as the five Rs of tax: Revenue, Redistribution, Representation, Repricing and Regulation.
However, current tax policies and systems, particularly in the global South, are failing. In many low-income countries, tax revenues make up a small percentage of GDP and are regressive. And across the world, tax avoidance and evasion, particularly by trans-national corporations and wealthy elites, are a fundamental driver of social, economic, and political inequalities.
This paper explains why national and international tax policies and systems are failing society and argues that the health community must engage more actively in advocating for comprehensive tax reforms, recognising that tax policies play a pivotal role in creating just, peaceful, and healthy societies. It stresses the need for health professionals to participate in national and international tax policy discussions, collaborate with movements for tax justice, and hold
governments accountable, particularly in the context of the ongoing UN tax convention negotiations. Reformed tax systems are presented as crucial tools for reducing inequality and fostering better health outcomes worldwide.