Co-Financing Community-Driven Development Through Informal Taxation: Experimental Evidence from South-Central Somalia

Boogaard, Vanessa van den; Santoro, Fabrizio

doi:10.19088/ictd.2021.016

Cited by 3 publications

(1 citation statement)

References 81 publications

(132 reference statements)

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“…Every country collects taxes from citizens to mobilise revenue for developmental projects and programmes (Van den Boogaard & Santoro, 2021;Bastiaens, 2021;Nana & Andrew, 2020).…”

Section: Smesmentioning

confidence: 99%

Tax equity perceptions, compliance intention and compliance behaviour among small and medium enterprises in Ghana

Mbilla

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College of Law and Management Studies, UKZN 2023iii DEDICATION This thesis and PhD degree are dedicated to my parents. My father, Mbilla Alale, whose words of encouragement, push for tenacity and inspiration to strive for better education ring in my ears.Special gratitude to my loving Mother, Awumbam Mbilla, who motivated me to unleash my most significant potential and always saw the best in whatever I aspired to become. iv ACKNOWLEDGMENTSThank you to my supervisors, Prof. Mabutho Sibanda and Dr Siphiwe Mqadi, for providing directions, instructions, feedback, and support throughout this thesis. A special thanks to the Dean of Regentropfen College of Applied Sciences, Mr Abiola Adeniyi, for all the needed consultations and support that he gave me throughout this period. I also want to thank the Administrator, Higher Degrees, School of Accounting, Economics and Finance, Mrs Sesheni Naidoo, and the current Dean and Head of the School of Accounting, Economics and Finance, Prof M. Sibanda, for providing that much-needed push in the right direction, guidance and a sounding board when required. Thank you to my siblings for putting up with me when I was at my "lows" with this thesis and were always there when I needed an escape.

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“…Every country collects taxes from citizens to mobilise revenue for developmental projects and programmes (Van den Boogaard & Santoro, 2021;Bastiaens, 2021;Nana & Andrew, 2020).…”

Section: Smesmentioning

confidence: 99%

Tax equity perceptions, compliance intention and compliance behaviour among small and medium enterprises in Ghana

Mbilla

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Mobile money taxation and informal workers: Evidence from Ghana's E‐levy

Anyidoho

Gallien

Rogan

et al. 2023

Development Policy Review

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SummaryMotivationIn recent years, governments in low‐income countries have increasingly introduced taxes on mobile money transfers. These are often explicitly promoted as a way of taxing informal economic activity, but critics have noted their potential negative impact on lower‐income groups and specifically those in the informal sector. Yet there is virtually no evidence base on the effects of mobile money taxes on informal workers.PurposeThis article assesses how informal workers in Accra, Ghana, use mobile money and how they perceive Ghana's Electronic Transfer Levy (E‐levy), introduced in May 2022. This provides a particularly interesting case study to explore the equity implications of the tax, as the policy was explicitly justified as a way of taxing the informal economy but also includes measures to limit the tax burden on lower‐income groups.Methods and approachThe article uses data from a survey of 2,700 self‐employed informal workers in the Accra Metropolitan Assembly to capture citizen perceptions of the policy and to examine the likely impact of the E‐levy on informal workers with reference to equity.FindingsOverall, our results suggest that the E‐levy is highly regressive. Further, we show that most informal workers disapprove of the E‐levy, reflecting not just concerns about its equity impacts, but also disappointment with the government's performance.Policy implicationsOur findings suggest that taxes on digital financial services should be reconsidered from an equity perspective. While some policy measures, including those undertaken in Ghana, can protect low‐income earners, they are often insufficient to counteract overall regressive impacts. Where they are implemented, social spending from the revenue from these taxes should target low‐income populations in the informal economy, while governments should focus on building trust among informal workers with regard to revenue raising and spending.

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Challenging the formality bias: The organization of informal work, working relations, and collective agency in Kenya and Tanzania

Riisgaard

Torm

Kinyondo

et al. 2023

Development Policy Review

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MotivationFormal social protection systems, such as health insurance and representation, are often biased towards formal workers; thereby excluding most of the world's working population who make a living in the informal economy.PurposeThe article extends existing critiques of the formality bias by investigating the reality of work for people in the informal economy in Kenya and Tanzania and analysing related social protection challenges. Specifically, we look at a) the governance of work; b) the organization of work relations; and c) collective agency. In terms of social protection, we focus on formal and informal forms of social insurance and representation.Methods and approachWe draw on interview and survey data from people working in micro trading, transport, and construction in Nairobi and Kisumu, Kenya, and Dar es Salaam and Dodoma, Tanzania. 1462 workers were surveyed, and 24 focus group discussions were run with such workers. Interviews were held with 120 key informants: leaders and members of informal workers’ associations in the three sectors, as well as representatives of authorities, trade unions, and business associations. Data were collected from June 2018 to December 2019.FindingsFormal social insurance and representation do not fit the reality of most people working in the informal economy: they have been modelled on and designed to support workers in formal standard employment relations. At the same time, informal workers’ own associations play important roles in meeting—albeit inadequately—the social insurance and representational needs of their members.Policy implicationsMeaningfully engaging with the reality of work and collective agency in the informal economy is necessary to inform more appropriate policies and measures to provide informal workers with appropriate social protection measures, particularly social insurance and representation. Their reality should not have to conform to an inadequate model; rather the model should fit their reality.

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Co-Financing Community-Driven Development Through Informal Taxation: Experimental Evidence from South-Central Somalia

Cited by 3 publications

References 81 publications

Tax equity perceptions, compliance intention and compliance behaviour among small and medium enterprises in Ghana

Tax equity perceptions, compliance intention and compliance behaviour among small and medium enterprises in Ghana

Mobile money taxation and informal workers: Evidence from Ghana's E‐levy

Challenging the formality bias: The organization of informal work, working relations, and collective agency in Kenya and Tanzania

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