UNDP LaoPDR 7d ago

How much do tax incentives really cost, and how can governments measure their impact? Tax expenditures are often invisible in government budgets, yet they play a significant role in shaping public finances. Because they represent revenue forgone to achieve policy objectives, tax expenditures should be viewed as government spending through the tax system and scrutinized just as carefully as direct budget expenditures. Watch this short explainer to learn what tax expenditures are, why they matter, and how Lao PDR’s first comprehensive Tax Expenditure Report is helping inform more transparent, efficient, and evidence-based tax policy.