The Fair Tax Monitor (FTM) is a unique evidence-based advocacy tool that identifies the main bottlenecks within tax systems and provides strong evidence for advocacy work at national and international level. The tool allows for a comparison of tax policies and practices in different countries, using a standardized methodology and unified research approach thanks to jointly developed common research framework. The 2016 pilot edition relies on data and analyses presented in the country reports from Bangladesh, Pakistan, Senegal and Uganda. In 2018 we have expanded the FTM group to 11 countries in total: Tunisia, Nigeria, Mali, Zambia, OPT, Cambodia and Vietnam have been added to the list.

During the course of 2018-2019 a total of 3 countries delivered a final report (Vietnam, Uganda and OPT), 4 countries (Nigeria, Bangladesh, Pakistan and Cambodia) have delivered draft reports which are expected to be finalized halfway through 2019. For the year 2020, Brazil and Egypt's tax system will be under assessment.

You can find the older country reports under 'Fair Tax Monitor' > 'Previous Research'. The most up-to-date results will be shown in 'Latest Overview', as well as on the country pages.

New research is underway and will be published as soon as possible.
  • 2015
  • 2016
  • 2018
MAP
SCORECARD

2016
  • PROGRESSIVE TAX SYSTEM
  • SUFFICIENT REVENUES
  • EFFECTIVE TAX ADMINISTRATION
  • PRO-POOR PUBLIC SPENDING
  • ACCOUNTABLE PUBLIC FINANCES
  • WELL GOVERNED TAX EXEMPTIONS
FTM focus countries
other CRAFT countries
0-2
3-4
5-6
7-8
9-10
unfair
fair
2016 PROGRESSIVE TAX SYSTEM SUFFICIENT REVENUES EFFECTIVE TAX ADMINISTRATION PRO-POOR PUBLIC SPENDING ACCOUNTABLE PUBLIC FINANCES WELL GOVERNED TAX EXEMPTIONS
VIETNAM
7
8
9
6
5
4

The share of indirect taxes in total tax revenue has increased sharply to over 60% while direct taxes have fallen below 40%. This has a negative impact on the progressiveness of Vietnam’s tax system. 

Vietnam scores high on budget revenue completeness. A way to improve further would be to decrease reliance on land use fees, as it is not a sustainable source of revenue.    

The Vietnam government has devoted a lot of resources into the tax body, especially in the IT system.    

Expenditures on basic public services in Vietnam such as education and health were fairly well evaluated. Education expenditure accounted for 18-20% of total state budget expenditure. On the other hand, expenditure on healthcare and agriculture does not meet international standards. 

Participation of people and social organizations in the formulation and implementation of tax policies is limited. Additionally, corruption remains a matter of concern, as well as budget disclosure transparency.    

Tax exemptions in Vietnam are abundant, especially for corporate income tax. Many multinationals enjoy a tax rate of 10%, which is relatively low compared to the normal tax rate of 20%. Tax avoidance also frequently occurs. 

OPT
5
5
8
6
2

There is a lack of progressive taxation for both individuals and corporations with large incomes. Direct tax only made up 9% of total tax revenues in 2017, which makes the national tax system regressive of nature.

Given the complex political and economic conditions of the region, the revenue structure poses a long-term risk to the fiscal sustainability of the Palestinian Authorities. Currently they are able to meet 82% of their total current expenditure.    

The overall operational effectiveness of the Palestinian tax system is satisfactory and improving over time in terms of administration costs and revenue shortfalls. However, improvements need to be made in terms of collection procedures, audit function, and tax avoidance and evasion.    

The security sector alone absorbs 29% of total public spending – equaling that of health and education combined. This has created widespread concern in Palestinian society over what is considered as ‘overspending on security’ at the expense of social services.    

The administration of the tax system in Palestine still lacks sufficient transparency and accountability, and escapes effective institutional oversight. Companies and individuals often succeed, through designated accountants, in benefitting from loopholes in the tax system to pay lower taxes than they should.    

Palestina scores dramtically low on this area due to absence of information on the exemptions granted to industrial zone investors. The list of investors names is not available to the public, therefore it is not possible to ascertain whether they comply with the investment exemptions. Additionally, no financial reports on investment exemptions are published. 

NIGERIA
6
7
6
2
5
2