Taxation

Informal Taxation in Post-Conflict Sierra Leone: Taxpayers’ Experiences and Perceptions

Citizens often pay a range of ‘taxes’ that differ substantially from statutory policies, in low-income and post-conflict countries and particularly in rural areas. These ‘informal taxes’, paid to a variety of state and non-state actors, are frequently overlooked in analyses of local systems of taxation. This problematic situation leads to misunderstandings of individual and household tax burdens...

Communicating to Improve Compliance: Taxpayers’ Feedback on Message and Mode of Delivery in Rwanda

The journey started gradually for the Rwanda Revenue Authority (RRA), from coercion to persuasion to drive tax compliance. This is shown in the mission and core value statements that underpin the tax administration’s activities in service delivery and trade facilitation. Recently the RRA has undertaken aggressive tax education and sensitization campaigns in order to influence taxpayer behaviour...

Tax Base Erosion and Profit Shifting in Africa – Part 2: A Critique of Some Priority OECD Actions from an African Perspective

Three of the highest priority actions were identified in this paper, which have the greatest BEPS impact for African economies. These are: Action 4, which deals with limiting base erosion via interest deductions and other financial payments; Action 6, which deals with preventing treaty abuse; and Action 7, which discussed the prevention of the artificial avoidance of permanent establishment...

One Size Does Not Fit All: A Field Experiment on the Drivers of Tax Compliance and Delivery Methods in Rwanda

The literature in this report focused exclusively on high and middle-income countries. This paper begins to fill this gap by reporting on the results of a tax field experiment in Rwanda, while also focusing on some characteristics that may be common to other low-income countries. It evaluates an intervention carried out by the Rwanda Revenue Authority (RRA), which involved sending messages to...

Are Africans Willing to Pay Higher Taxes or User Fees for Better Health Care?

Publisher: Afrobarometer
Published: 2016
"In many parts of Africa, access to and quality of medical services remain poor. While economic growth in recent decades has fostered improved health care on the continent, weak funding, brain drain of trained professionals, and ongoing battles with diseases such as TB, HIV, diarrheal diseases, and malaria as well as recurring epidemics such as Ebola continue to put immense pressure on...

Linking Taxation and Social Protection: Evidence on Redistribution and Poverty Reduction in Ethiopia

Poverty reduction, and more recently inequality, are pressing concerns in many low and middle-income countries. This is not in the least due as a result of the Sustainable Development Goals committing countries to significant improvements by 2030. In order to reach these goals, redistribution is very important and is shaped by countries’ tax and welfare systems. Despite redistribution...

Building Capacity for Domestic Resource Mobilization: The Role of Development Partners

Published: 2016
The funding sources for development programs have been neither stable nor predictable, particularly after the global financial crisis in 2008. It has become clear that while donor financing remains important, overreliance on donor funding will not sustainably drive the success of the two continental agendas, hence the need to focus on other development finance options such as domestic resource...

The Carrot and the Stick: Evidence on Voluntary Tax Compliance from a Pilot Field Experiment in Rwanda

Key findings from a pilot field experiment on tax compliance, is discussed in this paper. A key objective of the paper, is to provide lessons learned on implementing this type of study in low-income countries, and reporting initial econometric results. Section 2 summarizes some characteristic features of low-income countries that researchers need to factor into their research plans and design....

Building Capacity for Domestic Resource Mobilization: The Role of the Government

Published: 2016
Africa adopted an industrialization strategy, and committed to implement Agenda 2063 and Sustainable Development Goals (SDGs), all of which require adequate funding. Given that no African country fully achieved all the Millennium Development Goals (MDGs) largely due to funding constraints, domestic resource mobilization is therefore a very critical issue.Thus African governments are responsible...

Unlocking the Potential of Administrative Data in Africa: Tax Compliance and Progressivity in Rwanda

This paper looks at tax compliance using administrative data from Rwanda. It discusses the use of administrative data for tax research – specifically anonymized taxpayers records, which have become increasingly available on the African continent. The paper critically summarizes the key advantages and disadvantages of using this data for tax research in Africa. It further proceeds to illustrate...

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