Mental health problems have impacted young people, the unemployed and those facing financial insecurities during the Covid-19 pandemic, the OECD said. PA/Getty Images
Mental health problems have impacted young people, the unemployed and those facing financial insecurities during the Covid-19 pandemic, the OECD said. PA/Getty Images
Mental health problems have impacted young people, the unemployed and those facing financial insecurities during the Covid-19 pandemic, the OECD said. PA/Getty Images
Mental health problems have impacted young people, the unemployed and those facing financial insecurities during the Covid-19 pandemic, the OECD said. PA/Getty Images

World's richest countries are not providing adequate mental health care during pandemic, OECD says


Deena Kamel
  • English
  • Arabic

Governments of the world's richest nations are falling short in tackling key mental healthcare challenges that have spiked during the pandemic and weighed heavily on economies worldwide, the Organisation for Economic Co-operation and Development (OECD) said.

The Paris-based organisation released its first report benchmarking the performance of its 38 member states in addressing the social and economic costs of mental health difficulties.

OECD countries have not significantly increased government spending on mental health over the past decade, the report said. While there are clear efforts to increase access to mental health services, particularly with digital technologies such as tele-health services, 67 per cent of people who need mental health support still find it difficult to secure access due to finances, wait times or transport.

Even in OECD countries that have the lowest rates of unmet needs for mental health care, 30 per cent or more of the population report some unfulfilled demand for mental health services.

Even before the onset of the Covid-19 crisis and prolonged lockdowns, an estimated one in two people experienced a mental health condition at some point in their lifetime and one in five were living with a mental health issue at any given time. Since the start of the pandemic, levels of mental distress have increased, with the prevalence of anxiety and depression doubling in some countries, the report shows.

The failure by governments to cope with the mental health crisis exacerbated by the pandemic also has broader economic repercussions.

Mental ill-health drives economic costs equal to more than 4.2 per cent of gross domestic product, some of which are the direct costs of treatment. But more than a third are indirect costs related to lower employment rates and reduced productivity, the OECD estimates.

Young people, unemployed individuals and those experiencing financial difficulties are facing a sharp increase in mental distress during the pandemic, the report showed.

People with serious mental health conditions still have a much lower life expectancy than the population average, the report said. In all countries people with a mental health issue were less likely to be employed and had a lower level of education than those without mental distress.

The OECD urged countries to urgently increase investment and quality of care in order to reduce the high social and economic costs of mental health problems.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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