Domestic tax revenues are the most sustainable source of financing for public expenditure in developing countries. Until recently, however, tax policy and practice has received relatively little attention in development initiatives, policies and research. In 2009, SOMO, Tax Justice NL, CIDIN, Oxfam Novib, the Oikos foundation and the Ministry of Foreign Affairs therefore organised a one-year process to enhance information exchange and cooperation among relevant actors related to taxation and development.

On 2 December 2009, the Raising Tax Revenue consortium organised a conference in Amsterdam. In preparation of this, SOMO, Tax Justice NL and CIDIN prepared three papers addressing (i) international barriers to raising taxes; (ii) domestic barriers to raising taxes; and (iii) the relation between aid and tax revenues. These issues were discussed at the conference attended by a wide range of experts. It became clear that development assistance can help developing countries in their efforts to raise tax while, at the same time, donor countries have a role to play in stopping multinationals from siphoning off profits from poor countries through tax evasion and avoidance.

The key result of the process was that policymakers, scientists and practitioners came together to discuss the potential and constraints of raising taxes in developing countries. As such, an important pool of expertise has been created and a range of activities will ensure that the process is continued.