Conclusion and policy recommendations

Chapter 7 offers the concluding remarks and policy recommendations. The chapter identifies significant global disparities in tax revenue levels and attributes these differences, in part, to cultural factors—specifically, the degree of postmaterialism within societies. Our findings suggest that in postmaterialist societies, there is reduced emphasis on monetary accumulation and a greater concern for environmental sustainability and overall quality of life. In such contexts, citizens are more willing to comply with taxation, driven not by a desire to accumulate wealth but by a sense of civic responsibility and a demand for public goods, which the state is expected to redistribute effectively. Conversely, in countries exhibiting lower levels of postmaterialism, individuals tend to prioritize financial security and material possessions, often resulting in tax avoidance or resistance to fiscal compliance. This cultural orientation contributes to lower tax-to-GDP ratios in those regions. The evidence underscores that cultural values—particularly postmaterialist attitudes—play a critical role in shaping fiscal behavior and tax outcomes. From a policy perspective, the chapter advocates for the incorporation of broader measures of culture and social capital into economic analysis. It also recommends the design of tax instruments, such as environmental levies, that align with postmaterialist values. Finally, it calls for a greater integration of interdisciplinary approaches, including insights from sociology and political science, to more effectively understand and address cross-country economic differences.