Published on October 10, 2025 – Updated on October 10, 2025

A new Project Syndicate column by Rabah Arezki, Grégoire Rota-Graziosi et Rick Van der Ploeg.

For decades, the VAT has been a cornerstone of tax systems worldwide, providing governments with a stable source of revenue and fiscal flexibility. But in many countries, it has not replaced lost tariff income and has encouraged exports of raw materials, highlighting the need to align tax policy with national development priorities.

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