Equitable taxation and efficient revenue mobilization – tools for evidence based policymaking

Outline
  • Expected start date:
    2019•01•01
    Expected end date:
    2020•12•31
    Institute:
    UNU-WIDER
    Project Status:
    Ongoing
    Project Type:
    Research
    Project Manager :
    Pia Rattenhuber

    Developing countries, including in Africa, have been able to raise their tax revenues, but the level of overall revenues is still at too low level to secure sustainable financing of the necessary public spending. Rising inequalities and a lack of adequate tools to combat inequalities and poverty effectively are another cause of concern in many countries.

    This project continues the work to the system-wide impacts of social protection and tax systems in developing countries. It aims to enhance the revenue mobilization in developing countries by involving research work that provides analytical tools for policy-makers and researchers alike to understand the current scope of tax-benefit systems and to be able to simulate impacts of policy changes. It also aims conduct policy-relevant research by using of administrative tax data which is collected by tax and customs authorities.

    The suggested programme is divided into three work streams, of which each includes several activities. The first work stream focuses on tax authorities’ administrative data for research purposes, the second work stream deals with tax-benefit microsimulation, and the third one will continue maintaining and updating the Government Revenue Dataset (GRD). Institution and capacity building are essential ingredients to all work streams and will take place as work streams unfold.

    This project aims to encourage the creation and distribution of more accurate data on government revenues as well as its analysis for policy. This way, it offers new evidence on the impacts of tax systems on economic efficiency; in particular, on tax collection efficiency. Political economy aspects are an important part of this research. Such an approach helps in understanding which features foster successful adoption of social protection reforms.