// definition
Tax expenditure
Revenue forgone against a tax benchmark
Short definition
A provision that reduces tax revenue relative to a reference tax system. Its estimated cost depends on that benchmark and the available data. Removing it may raise a different amount because taxpayers change their behaviour and tax provisions interact.
risk atlas
Knowledge map
Intuition
Costing a tax concession requires an explicit benchmark; estimating a reform also requires behavioural effects.
Related analyses
Primary sources
- France, 2025 draft budget, revenue assessment, volume IITax benchmarks, behavioural effects and interactions between measures.