One size does not fit all. Tax policy To fulfil their functions, all governments require taxation revenue. Sound tax policy enables governments to achieve public policy objectives while also supporting a favourable investment environment. Policies that develop and maintain a skilled, adaptable and healthy population, and ensure the full and productive deployment of human resources, help create a favourable investment environment. While there is no single model for good public governance, there are commonly accepted standards of public governance to assist governments in assuming their roles effectively.