RETHINKING TAX JUSTICE: LEGAL MECHANISMS FOR PROGRESSIVE TAXATION IN EMERGING ECONOMIES

Abstract

This study examined legal mechanisms for promoting progressive taxation in emerging economies, focusing on Colombia, Argentina, India, and South Africa. While progressive tax policies are often presented as tools for enhancing equity and reducing wealth gaps, their implementation in developing contexts remains complex and politically challenging. The research employed a comparative case study design supported by secondary data analysis, legal framework evaluations, and institutional readiness assessments. Findings revealed that mere enactment of wealth taxes or progressive income tax laws was insufficient without strong enforcement capacity, robust anti-avoidance measures, and comprehensive digital tax administration systems. Colombia and Argentina, despite introducing wealth taxes, experienced limited revenue gains due to administrative weaknesses and elite resistance. In contrast, India and South Africa achieved notable improvements in compliance and revenue mobilization through strengthened anti-avoidance frameworks and advanced digital infrastructures, even in the absence of explicit wealth taxes. The study highlighted the critical role of technological modernization and international cooperation frameworks, such as OECD/G20 BEPS standards, in supporting domestic reforms. Policy recommendations included strengthening legal enforcement, enhancing digital infrastructure, fostering public tax morale, and adopting gradual, context-specific tax measures. Overall, the findings emphasized that achieving tax justice in emerging economies requires a holistic approach that integrates legal, technological, and social dimensions to ensure equitable and sustainable fiscal outcomes.

Keywords; Anti-avoidance laws, Digital tax administration, Emerging economies, Legal enforcement, Progressive taxation, Wealth tax