Tax Policy and Equity: A Systematic Review of Design Strategies in Public Finance

Abstract

This article systematically reviews the design strategies of
tax policy with a focus on their equity implications in
developing and emerging economies. The central question
explores how different tax instruments such as income,
consumption, and property taxes affect income
distribution, social fairness, and fiscal justice. The study
synthesizes findings from peer-reviewed literature
published up to 2021, identifying common design
challenges, institutional constraints, and policy trade-offs.
Drawing on diverse case studies, the review highlights the
uneven impact of tax structures on vulnerable populations
and emphasizes the importance of progressive taxation,
transparency, and accountability in promoting equitable
outcomes. The article discusses these themes through a
multidimensional lens, integrating technical policy insights
with broader governance and institutional considerations.
The findings suggest that equitable tax reform requires not
only better policy design but also improved administrative
capacity, political will, and citizen engagement to sustain fair
and inclusive fiscal systems.