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Estimating Border Tax Evasion in Mozambique

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  • Joao Ernesto Van Dunem
  • Channing Arndt

Abstract

The relationship between border tax rates and evasion is examined for Mozambique using the methodology developed by Fisman and Wei (2004). We find that high tax rates are associated with high levels of under-reporting of import values and that tax rates have a strong and positive effect on tax evasion. Results also strongly confirm the presence of fraudulent classification of merchandise into lower taxed product categories. Finally, analysis of the revenue implications of lower trade taxes finds that the revenue curve is quite flat but remains upward sloping with respect to the tax rate when only evasion is considered.

Suggested Citation

  • Joao Ernesto Van Dunem & Channing Arndt, 2009. "Estimating Border Tax Evasion in Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 45(6), pages 1010-1025.
    • Handle: RePEc:taf:jdevst:v:45:y:2009:i:6:p:1010-1025
    DOI: 10.1080/00220380902952324
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    References listed on IDEAS

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    1. Gatti, Roberta, 1999. "Corruption and trade tariffs, or a case for uniform tariffs," Policy Research Working Paper Series 2216, The World Bank.
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    Cited by:

    1. Cyril Chalendard, 2015. "Use of internal information, external information acquisition and customs underreporting," Working Papers halshs-01179445, HAL.
    2. Andam, Kwaw S. & Arndt, Channing & Hartley, Faaiqa, 2017. "Eggs before chickens? Assessing Africa’s livestock revolution with an example from Ghana:," IFPRI discussion papers 1687, International Food Policy Research Institute (IFPRI).
    3. Joël CARIOLLE & Cyril CHALENDARD & Anne-Marie GEOURJON & Bertrand LAPORTE, 2017. "Going beyond analysis of internal data to support customs modernization: a case study in Gabon," Working Papers P173, FERDI.
    4. Joel CARIOLLE & Cyril CHALENDARD & Anne-Marie GEOURJON & Bertrand LAPORTE, 2016. "Décloisonner l’analyse des données pour appuyer la modernisation des douanes : une illustration à partir du Gabon," Working Papers 201618, CERDI.
    5. Mascagni, Giulia & Molla, Kiflu & Mengistu, Andualem, 2021. "Trade Tax Evasion and the Tax Rate: Evidence from Transaction-level Trade Data," Working Papers 16548, Institute of Development Studies, International Centre for Tax and Development.
    6. Andualem T Mengistu & Kiflu G Molla & Giulia Mascagni, 2022. "Trade Tax Evasion and the Tax Rate: Evidence from Transaction-level Trade Data," Journal of African Economies, Centre for the Study of African Economies, vol. 31(1), pages 94-122.
    7. Levin, Jörgen & Widell, Lars M., 2014. "Tax evasion in Kenya and Tanzania: Evidence from missing imports," Economic Modelling, Elsevier, vol. 39(C), pages 151-162.
    8. Lin, Chin-Ho, 2018. "Tariff evasion in machinery production networks: Evidence from East Asia," Economic Modelling, Elsevier, vol. 70(C), pages 115-126.
    9. Fawzi Banao & Bertrand Laporte, 2022. "Terrorism, Customs and fraudulent Gold exports in Africa," CERDI Working papers hal-03889094, HAL.
    10. Cyril Chalendard, 2015. "Use of internal information, external information acquisition and customs underreporting," CERDI Working papers halshs-01179445, HAL.
    11. Yi-Chung Hsu & Chien-Chiang Lee, 2016. "Factors Affecting Tax Evasion: Do Interest Rate And Regional Effects Matter?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-23, September.
    12. Mirco Tonin, 2014. "Reporting import tariffs (and other taxes)," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(1), pages 153-173, February.
    13. Tasew Tadesse, 2023. "Explaining Customs Tax Evasion in Ethiopia: The Effect of Trade Tax, Law Enforcement, and Product Characteristics," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(3), pages 330-353, September.
    14. Temesgen Worku & Juan P. Mendoza & Jacco L. Wielhouwer, 2016. "Tariff evasion in sub-Saharan Africa: the influence of corruption in importing and exporting countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(4), pages 741-761, August.
    15. Mohammad Abd Alaffo AlAdham & Mohammed Abdallah Abukhadijeh & Mohammad Fayez Qasem, 2016. "Tax Evasion and Tax Awareness Evidence from Jordan," International Business Research, Canadian Center of Science and Education, vol. 9(12), pages 65-75, December.

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