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Tax Revenue Mobilistation In Developing Countries: Issues and Challenges


  • Mascagni, Giulia
  • Moore, Mick
  • McCluskey, Rhiannon


In recent years, domestic revenue mobilisation in developing countries gained increasing prominence in the policy debate. Several factors explain this, including the potential benefits of taxation for statebuilding; independence from foreign aid; the fiscal effects of trade liberalisation; the financial and debt crisis in the “West†; and the acute financial needs of developing countries. Governments in developing countries face great challenges in mobilising tax revenues, which result in a gap between what they could collect and what they actually collect. Tax gaps are hard to quantify for reasons that are discussed in the report. However in is known that significant contributors to tax gaps include tax evasion and avoidance, tax exemptions, and inequitable rent-sharing in the extractive sector, amongst others. The report discusses European and international actions to improve revenue mobilisation in developing countries and it suggests some recommendations for future.

Suggested Citation

  • Mascagni, Giulia & Moore, Mick & McCluskey, Rhiannon, 2014. "Tax Revenue Mobilistation In Developing Countries: Issues and Challenges," Working Papers 3948, Institute of Development Studies, International Centre for Tax and Development.
  • Handle: RePEc:idq:ictduk:3948

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    References listed on IDEAS

    1. Paul Clist & Oliver Morrissey, 2011. "Aid and tax revenue: Signs of a positive effect since the 1980s," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(2), pages 165-180, March.
    2. Moore, Mick, 2013. "Obstacles to Increasing Tax Revenues in Low Income Countries," Working Papers 4666, Institute of Development Studies, International Centre for Tax and Development.
    3. Fjeldstad, Odd-Helge, 2013. "Taxation and Development : a Review of Donor Support to Strengthen Tax Systems in Developing Countries," WIDER Working Paper Series 010, World Institute for Development Economic Research (UNU-WIDER).
    4. Burgess, Robin & Stern, Nicholas, 1993. "Taxation and Development," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 762-830, June.
    5. Carter Patrick, 2013. "Does Foreign Aid Displace Domestic Taxation?," Journal of Globalization and Development, De Gruyter, vol. 4(1), pages 1-47, August.
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    Cited by:

    1. Christian EBEKE & Mario MANSOUR & Grégoire ROTA-GRAZIOSI, 2016. "The Power to Tax in Sub-Saharan Africa: LTUs, VATs, and SARAs," Working Papers P154, FERDI.
    2. NANTOB, N'Yilimon, 2014. "Taxes and Economic Growth in Developing Countries : A Dynamic Panel Approach," MPRA Paper 61346, University Library of Munich, Germany, revised 05 Feb 2015.
    3. Jean-Louis Combes & Rasmané Ouedraogo, 2016. "How Does Inclusive Growth Boost Tax Revenue Mobilization?," Working Papers halshs-01281914, HAL.
    4. Christopher E.S. WARBURTON, 2016. "The Bottom Twenty: An Analysis Of Income Inequality In High Income And Developing Countries, 1990-2010," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(2), pages 5-24.
    5. Salim Nuhu Ahmed & John M. Musah, 2018. "On asymmetric information and tax morale in developing countries," WIDER Working Paper Series 012, World Institute for Development Economic Research (UNU-WIDER).
    6. Marie-Louise Leroux & Dario Maldonado & Pierre Pestieau, 2015. "Compliance, Informality and Contributive Pensions," CIRANO Working Papers 2015s-52, CIRANO.
    7. Wisdom Takumah & Bernard Njindan Iyke, 2017. "The links between economic growth and tax revenue in Ghana: an empirical investigation," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 9(1), pages 34-55.
    8. Hayley Reynolds & Ludvig Wier, 2016. "Estimating profit shifting in South Africa using firm-level tax returns," WIDER Working Paper Series 128, World Institute for Development Economic Research (UNU-WIDER).
    9. Roukiatou Nikiema & Pam Zahonogo, 2017. "Taxpayer behaviour and institutions in Sub-Saharan Africa," BeFinD Working Papers 0119, University of Namur, Department of Economics.
    10. repec:pdc:jrnbeh:v:13:y:2017:i:4:p:439-467 is not listed on IDEAS
    11. Marie-Louise Leroux & Dario Maldonado & Pierre Pestieau, 2015. "Contributive Pensions and Imperfect Tax Compliance: A Political Economy Model," CESifo Working Paper Series 5656, CESifo Group Munich.

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