Beneficial impact of tax reforms on tax revenue performances in Togo: Myth or reality?

Abstract

Tax reforms are often motivated by their potential to improve tax revenue mobilization. However, their actual impacts are difficult to quantify. Using cross‐country panel data over the period 2000–2021, this article evaluates the impact of the 2012 tax reforms on tax revenue performance in Togo. We follow the Synthetic Control Method (SCM) estimation procedures. After comparing the observed evolution of Togo's tax revenue output in the period 2013–2021 with that of synthetic Togo, our estimates show that an accumulated yearly average gain is about 3.09% of GDP. Hence, the article concludes that after 9 years of reform, the improvement in Togo's tax performance is remarkable. However, more tax‐related and institutions‐related reforms are crucial to make Togo's tax system more buoyant and sustainably improve tax revenue mobilization.

Effects of financial inclusion on tax revenue mobilization: Evidence from WAEMU countries

“…It is widely acknowledged that taxation provides a predictable and sustainable source of government revenue, in contrast with the volatility of other important sources of public revenues such as development aid and natural resources revenues (Bayale et al, 2023; Organization for Economic Cooperation and Development/African Union Commission/African Tax Administration Forum, 2020). According to the United Nations Economic Commission for Africa (2010), the occurrence of the global financial crisis and economic crisis underscored the volatility and uncertainty revolving around external sources of development finance.…”

“…Under these conditions, tax revenue has become an increasingly vital source of income for governments in order to be able to pay for essential public services (Bayale, 2020;. Taxes also have a vital role to play in making growth sustainable and equitable, particularly in the context of the Covid-19 crisis (Bayale et al, 2023). As a result, identification of influential drivers of tax revenue have become important issues in economic policy formulation and are vital for policy makers in designing more effective economic policies.…”

“…In the WAEMU zone, most studies have focused on the effect of financial inclusion on monetary aggregates (Diarra & Ali, 2020), economic growth (Gourène & Mendy, 2019), inequality reduction, and poverty (Senou, 2021). Yet, financial inclusion could be an important opportunity to mobilize more tax revenue, which is a predictable and sustainable source of government revenue (Bayale et al, 2023;Bayale, 2020). Therefore, this research paper aims to analyze the effects of financial inclusion on tax revenue mobilization in the WAEMU countries.…”

Effect of productive capacities on tax revenue mobilization: Evidence from Sub‐Saharan African countries

“…Distinctly, the resources available to the majority of African countries come either from tax revenues support of development partners, foreign direct investments and migrants' remittances. The changing global macroeconomic environment and the high volatility of the various sources of financing for African economies has revealed the need to strengthen tax revenue mobilization for development financing (Bayale et al, 2023). For example, the Organization for Economic Cooperation and Development (OECD) indicates that official development assistance is no longer growing and will not be sufficient to meet international commitments (OECD, 2021).…”