MTRS Concept Note: Embarking on a Medium-Term Revenue Strategy (MTRS)

A Medium Term Revenue Strategy (MTRS) is a high-level road map of the tax system reform over 4-6 years—its policy, administration, and legal components. It embodies a government's strategy to mobilize resources through a tax system that can finance its spending needs and secure macroeconomic sustainability, while reflecting distributional considerations and creating appropriate incentives for economic and social development. The concept of the MTRS is introduced in Enhancing the Effectiveness of External Support in Building Tax Capacity in Developing Countries, Platform for Collaboration on Tax (IMF, OECD, UN, WB), July 2016. This concept note explains how MTRS approach can benefit countries in their effort to mobilize domestic resources effectively.