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The Tax Side of the Pandemic: Shifts in Compliance Attitudes and Perceptions in Rwanda

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  • Mascagni, Giulia
  • Santoro, Fabrizio

Abstract

While much knowledge is being generated on the impact of the pandemic, we still know very little on its implications on taxation in lower-income countries. Yet, tax is crucial to fund crisis response and recovery, in addition to broader development plans and expanded government expenditure. This paper starts addressing this gap using an unique dataset of survey data from Rwanda. We document two significant shifts in taxpayers’ views during the pandemic: perceptions about the fairness of the tax system improve by 40 per cent, and their attitudes to compliance become more conditional on the provision of public services of sufficiently good quality. We put these results in the broader context of crisis response. We show that they are not simply linked to individual experiences of the crisis or access to relief, but they are more likely linked to generalised improvements in solidarity and patriotism.

Suggested Citation

  • Mascagni, Giulia & Santoro, Fabrizio, 2023. "The Tax Side of the Pandemic: Shifts in Compliance Attitudes and Perceptions in Rwanda," Working Papers 17935, Institute of Development Studies, International Centre for Tax and Development.
    • Handle: RePEc:idq:ictduk:17935
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    References listed on IDEAS

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    1. Mahmud, Mahreen & Riley, Emma, 2021. "Household response to an extreme shock: Evidence on the immediate impact of the Covid-19 lockdown on economic outcomes and well-being in rural Uganda," World Development, Elsevier, vol. 140(C).
    2. Mascagni, Giulia & Santoro, Fabrizio, 2021. "The Tax Side of the Pandemic: Compliance Shifts and Funding for Recovery in Rwanda," Working Papers 16892, Institute of Development Studies, International Centre for Tax and Development.
    3. Santoro, Fabrizio & Groening, Edward & Mdluli, Winnie & Shongwe, Mbongeni, 2020. "To File or Not To File? Another Dimension of Non-Compliance: The Eswatini Taxpayer Survey," Working Papers 15578, Institute of Development Studies, International Centre for Tax and Development.
    4. Santoro, Fabrizio & Groening, Edward & Mdluli, Winnie & Shongwe, Mbongeni, 2020. "To File or Not To File? Another Dimension of Non-Compliance: The Eswatini Taxpayer Survey," Working Papers 15839, Institute of Development Studies, International Centre for Tax and Development.
    5. Moore, Mick, 2020. "What is Wrong with African Tax Administration?," Working Papers 15661, Institute of Development Studies, International Centre for Tax and Development.
    6. Santoro, Fabrizio & Mascagni, Giulia, 2022. "Visual Nudges: How Deterrence and Equity Shape Tax Compliance Attitudes and Behaviour in Rwanda," Working Papers 17602, Institute of Development Studies, International Centre for Tax and Development.
    7. Moore, Mick, 2020. "What is Wrong with African Tax Administration?," Working Papers 15831, Institute of Development Studies, International Centre for Tax and Development.
    8. Santoro, Fabrizio & Mdluli, Winnie, 2019. "Nil-Filing in Eswatini: Should the Revenue Administration be Concerned?," Working Papers 14478, Institute of Development Studies, International Centre for Tax and Development.
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