Case Studies in Tax Revenue Mobilization in Low-Income Countries

By Bernardin Akitoby, Jiro Honda, Hiroaki Miyamoto, Keyra Primus, Mouhamadou Sy

May 10, 2019

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Bernardin Akitoby, Jiro Honda, Hiroaki Miyamoto, Keyra Primus, and Mouhamadou Sy. Case Studies in Tax Revenue Mobilization in Low-Income Countries, (USA: International Monetary Fund, 2019) accessed December 26, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

How can Low-Income Countries (LICs) enhance tax revenue collection to finance their vast development needs? We address this question by analyzing seven tax reform experiences in LICs (Burkina Faso, The Gambia, Maldives, Mauritania, Rwanda, Senegal, and Uganda). Three lessons stand out, although reforms must be tailored to individual circumstances: (i) Tax reforms require first and foremost political commitment and buy-in from key stakeholders; (ii) Countries that pursue both revenue administration and tax policy reforms tend to see much larger and persistent gains; and (iii) A successful strategy often starts with fiscal reform measures with immediate effect to build momentum. These can include: simplifying the tax system; curbing exemptions; reforming indirect taxes on goods and services (e.g., excises); and better managing compliance risks through strengthening taxpayer segmentation (often beginning with strengthening the Large Taxpayers Office). A comprehensive reform strategy (e.g., a medium-term revenue strategy) can help to properly sequence reform measures and facilitate their implementation.

Subject: Consumption taxes, Excises, Revenue administration, Tax administration core functions, Taxes, Value-added tax

Keywords: Administration measure, Administration reform, Authorities' reform effort, Consumption taxes, Country authorities, Excise tax, Excises, Global, Government coalition, Income tax, Indirect tax, Reform effort, Reform measure, Reform strategy, Revenue administration, Revenue mobilization, Single tax, Tax administration core functions, Tax administration measure, Tax exemption, Tax policy, Tax procedure, Tax reform strategy, Tax system, Value-added tax, Withholding tax, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2019/104
Stock No:

WPIEA2019104
ISBN:

9781498314565
ISSN:

1018-5941

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