Session 3 | Making investment incentives work better: What reforms for better impact?
Nov 5, 2025 | 2:30 PM - 3:45 PM
CC15
Description
Incentives remain a common tool to attract and guide investment, but their effectiveness depends on context and design and their costs can be substantial. Alternative instruments or policies may deliver better results. Effective use of incentives that ensures value for money requires embedding tax incentives within countries’ broader investment strategies and strengthening their design and governance, especially in countries with limited fiscal space and other constraints. Recent international tax reforms, declining investment rates, and subsidy-driven competition highlight the need for better design and more evidence on effectiveness. Well-designed reforms can support countries to achieve policy objectives while ensuring competition supports productivity and growth. This session will discuss how to reform incentives to better reach their investment objectives, how tax and non-tax incentives interact, and how to support tax incentive reform.
