Tax Revenues in Fragile and Conflict-Affected States—Why Are They Low and How Can We Raise Them?

Akitoby, Bernardin; Honda, Jiro; Primus, Keyra

doi:10.5089/9781513550848.001

Cited by 11 publications

(8 citation statements)

References 15 publications

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“…As a result, the other sectors share the tax burden to a large degree (Rajaraman, 2004). In less-developed countries, the agriculture share of tax revenues is lower than the percentage of GDP, and consequently, tax performance is weaker (Akitoby et al, 2020). On the contrary, mining and industry tend to reduce tax effort (Pessino & Fenochietto, 2010;Fenochietto & Pessino, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Drivers of the Tax Effort: Evidence from a Large Panel

2022

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This paper extends previous literature by assessing the drivers of tax effort in a large panel of 122 countries over the period 1980 to 2017 and refining the analysis to regions, periods, income group, and economic development level. Our focus is on five blocks of determinants, namely: economic, fiscal, openness, structural, and political. We find that tax effort is influenced by all blocks, although results differ per income group. Tax effort in advanced economies is driven by all blocks of drivers, except political variables, while openness, structural, and political blocks prevail in developing economies. There is no consistency regarding the determinants across the four regions (Latin America, Africa, Europe and Asia). We also find that during the first two decades under analysis, tax effort is mainly associated with both higher levels of countries' tax revenues and the role of the agricultural sector in the economy, while from 1999 onwards the determinants are mainly driven by left-wing ruling governments and the economic and fiscal blocks of variables. Our results are robust for a battery of sensitivity and robustness tests. Taken all together, our findings suggest the existence of heterogeneous impacts, which implies that policies resulting in improvements in the level of tax effort can affect countries in different ways.

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Section: Literature Reviewmentioning

confidence: 99%

Drivers of the Tax Effort: Evidence from a Large Panel

2022

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“…Furthermore, political commitment is key to facilitate coordination by relevant agencies and encourage implementation of tax reforms. This is especially important for FCSs (Akitoby, Honda, and Primus 2020).…”

Section: Policies To Mobilize Revenues For Resilient and Inclusive Gr...mentioning

confidence: 99%

Revenue Mobilization for a Resilient and Inclusive Recovery in the Middle East and Central Asia

Verdier¹,

Rayner²,

Muthoora³

et al. 2022

Departmental Papers

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Box 1. Revenue Administration and Tax Policy Responses to COVID-19 in the Middle East and Central AsiaRecognizing taxpayers' liquidity constraints, countries in the region implemented several administrative and policy measures to provide tax relief, including: (1) tax deferrals on declaration and payments of individual and corporate taxes; (2) exemptions or postponement of rent payment, property and land taxes to selected sectors, including tourism, transportation, and cultural facilities; and (3) reduction or suspension of various government fees like stamp duties (Box Table 1).

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“…As a result, since our sample is limited to developing countries, it appears relevant to study the issue of tax administration together with that of tax policy. In addition, tax reforms carried out by international institutions such as the IMF are simultaneously tax policy reforms, such as broadening the tax base and deepening the quality of tax administration (Akitoby et al 2020). A number of authors, including Gillis, Shoup and Sicat (1990); Prichard (2010); Joshi, Prichard and Heady (2014); and Sebele-Mpofu (2020), express this concern about separating tax policy from the tax administration.…”

Section: Introductionmentioning

confidence: 99%

Finding the Missing Stone: Mobile Money and the Quality of Tax Policy and Administration

Apeti,

Edoh

2024

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Making tax administration more efficient and maximising voluntary compliance is a very difficult task for developing countries. In this paper, we analyse the effect of mobile money payments on the quality of tax policy and administration for a large sample of countries in developing economies. We use the World Bank indicator on efficiency of revenue mobilisation as a measure of the quality of tax policy and administration and employ an entropy balancing method to show that mobile money payments improve the quality of tax systems. This result is robust to several robustness tests, including sample alteration, alternative measures of mobile money, controlling for other aspects of tax policy, and alternative estimation methods such as GMM-system, event study approach and ordinary least square. In addition, our results show that the positive effect of mobile money on tax systems depends on the level of development, financial development, the state’s legitimacy, a country’s fiscal space, the number of available products/companies, the type of mobile money services, and the geographic position of countries. Finally, we highlight some potential mechanisms underlying these findings through lower tax compliance burden, smaller informal sector, and lower corruption.

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Tax Revenues in Fragile and Conflict-Affected States—Why Are They Low and How Can We Raise Them?

Cited by 11 publications

References 15 publications

Drivers of the Tax Effort: Evidence from a Large Panel

Drivers of the Tax Effort: Evidence from a Large Panel

Revenue Mobilization for a Resilient and Inclusive Recovery in the Middle East and Central Asia

Finding the Missing Stone: Mobile Money and the Quality of Tax Policy and Administration

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