To truly appreciate the significance of taxation’s contribution to paving the way to sustainable development, we must first examine its role in upholding the individual pillars of such development, such as society and the environment.

To understand the role of taxation in driving sustainable development, we must go beyond the temporary and purely economic and fiscal benefits that taxation affords by transferring resources from the private to the public sector and must focus on the importance of its weighty mission for the proper management of longterm expectations in sustainable and inclusive development.

This responsibility, for dealing with environmental and social issues, does not just concern businesses and consumers but the state too, in the context of exercising good tax governance, taking into consideration today’s expanded understanding of principles and obligations in the face of social responsibility.

We must endeavor to take into account the needs not only of today’s but also of future generations

Indeed, it can be argued that the path to sustainable development can indeed be considerably affected by the proper functioning of taxation, which is a crucial element in the relationship between the state, citizens and the environment. Well-targeted taxation, both in terms of legislation and strict and consistent enforcement, can have a positive impact on the three main pillars of sustainable development: the economy, society, and the environment.

As such, and in view of the ongoing vision for a balanced and equitable pursuit of the goals of sustainable development, we have but to develop a growth model based on intelligent, comprehensive, effective, and responsible tax planning. A system of taxation in which cyclical and structural taxation choices will allow the creation as well as the excellent management of economic measures, with an emphasis on not recklessly wasting resources that we will need in the future. In being true to the principle of sustainable development, we must also endeavor, through prudent tax governance and to the extent that it is possible, to take into account the needs not only of today’s but also of future generations.

To find positive examples of taxation that also demonstrate a commitment to promoting and implementing sustainable development and responsible entrepreneurship, we have to look no further than the spirit and content of the interventions proposed by the European Commission for the period up to 2024. This particular recipe includes comprehensive and well-thought-out planning that demonstrates true vision for a taxation system that is simpler, friendlier, fairer, stricter in regards to tax fraud, supportive of climate neutrality, and adapted to the demands of the digital world.

Let us recognize and acknowledge these as the fundamental prerequisites for achieving compatibility between taxation and the standards of modern good tax governance, as much on the national as on the European Union level through the EU’s Directive on Administrative Cooperation (DAC7), which keeps alive the vision for sustainable economic growth and development.