Improving systems, improving tax collection
Revenues from the extractives sector can play an important role in financing citizen services
In many EITI countries, revenues from the extractives sector can play an important role in financing citizen services, such as schools, health care and infrastructure.
The Addis Ababa Action Agenda on Financing for Development, agreed in 2015, has refocused attention on strengthening government systems to harness domestic resources for development.
The EITI Standard requires transparency on the roles and responsibilities of government agencies in managing the fiscal system. This enables greater government accountability in how government agencies exercise their tax duties vis-à-vis oil, gas and mining companies operating in each country. EITI reporting also highlights the need for capacity building and improvement in inter-agency collaboration, thus contributing to improved tax administration.
The EITI contributes to domestic resource mobilisation by:
1. Improving tax administration
2. Identifying practices that could undermine taxation
3. Fostering dialogue about fiscal policies and reform