Human rights based approach to recovery from the global economic and financial crises, with a focus on those living in poverty 2011, para. 50
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While raising tax revenue can be an essential part of an effective policy response to the effects of the crises, States should, however, be cognizant of their obligations to implement policies in accordance with the principles of non-discrimination and equality. In this context, the introduction of or an increase in regressive sales taxes or value added taxes may have a disproportionate impact on those who are already experiencing financial difficulties. Regressive taxes may represent an unequal added burden for those living in poverty or experiencing economic hardship, as they constitute a larger percentage of income. The real income of women living in poverty is particularly affected by the introduction of regressive taxes, especially when the introduction of taxes is carried out in conjunction with reductions to expenditure on public services. States must be vigilant in balancing the need to increase taxation revenue with their responsibilities to protect the most vulnerable and prevent further inequality.
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Non-negotiated soft law
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Special Rapporteur on extreme poverty and human rights