Driving information communication technology for tax revenue mobilization in Sub-Saharan Africa

Adegboye, Alex; Uwuigbe, Uwalomwa; Ojeka, Stephen; Uwuigbe, Olubukunola; Dahunsi, Olajide; Adegboye, Kofo

doi:10.1016/j.telpol.2022.102329

Cited by 11 publications

(7 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…According to the research of Andersson and Klinthäll (2012), Zioło et al (2022), Wilantari et al (2022) and Adegboye et al (2022), the GDP of the information and communication sector can moderate the relationship between ICT development and local taxes and levies. The GDP of the information and communication sector can moderate the relationship between ICT development and regional taxes and levies because the GDP of the information and communication sector indicates the degree to which a region's digital economy has developed.…”

Section: Discussionmentioning

confidence: 99%

“…Public administration is a crucial stakeholder having an impact on sustainability and ICT provides benefits for digitalized administration (Zioło et al, 2022). The development of ICT can be used as a proxy for tax revenue mobilization in addition to total tax income as a proportion of GDP and tax revenue as a percentage of GDP (Adegboye et al, 2022). Hypothesis 4: GRDP in the information and communication sector as a moderator in the relationship between ICT and local taxes and levies.…”

Section: The Impact Of Grdp In the Information And Communication Sect...mentioning

confidence: 99%

See 1 more Smart Citation

Is GRDP a mediating factor in enhancing local tax revenues due to ICT development in Indonesia?

Priambodo,

Anwar,

Suharno

2024

Nurture

View full text Add to dashboard Cite

Purpose: This study aims to investigate whether the Gross Regional Domestic Product (GRDP) of the information and communication sector mediates the relationship between Information and Communication Technology (ICT) development and local tax revenue enhancement across districts and municipalities in Indonesia. Design/Methodology/Approach: This study uses a quantitative approach to examine how ICT growth, access, infrastructure and utilization affect local taxes and regional levies using panel data from 2017 to 2021.The GRDP of the information and communication sector is incorporated as a crucial moderating variable. Findings: The findings reveal that the GRDP of the information and communication sector plays a vital moderating role in the relationships between ICT factors and local taxes and levies. ICT development benefits local tax systems through increased efficiency, transparency, reduced disparities and enhanced accessibility. Effective ICT infrastructure enables digital fiscal transactions, increasing revenues while improving collection efficiency and reducing income disparities among provinces. High ICT utilization supported by technological proficiency enables local governments to enhance local taxes and levies. Practical Implications: An increase in the GRDP of the information and communication sector leads to higher tax revenues for local governments, funding public services and infrastructure development. Additionally, it attracts investments from other sectors, boosting regional levies and promoting overall regional economic development. The study highlights leveraging the GRDP of this sector as a strategic factor to enhance local tax revenue and regional levies across Indonesian provinces contributing to fiscal decentralization efforts.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: The Impact Of Grdp In the Information And Communication Sect...mentioning

confidence: 99%

Is GRDP a mediating factor in enhancing local tax revenues due to ICT development in Indonesia?

Priambodo,

Anwar,

Suharno

2024

Nurture

View full text Add to dashboard Cite

show abstract

“…However, it is essential to note that ICT is not limited to internet use. Adegboye et al (2022) find a positive effect of ICT (telephone, mobile phone, and internet penetration rates) on revenue in 48 Sub-Saharan African countries. Using a fixed-effects model, Brun et al (2020) investigate the effect of ICT use on tax revenues.…”

Section: Introductionmentioning

confidence: 89%

“…While a large part of the literature has focused on the determinants of public revenue mobilization (Baunsgaard and Keen, 2010;Besley and Persson, 2014;Sen Gupta, 2007), other studies examined the effect of ICTs on economic outcomes (Niebel, 2018;Stanley et al, 2018), these two types of literature evolved separately as if there was no empirical link between the emergence of ICT (i.e., the evolution of information and communication technologies) and the evolution of the economy. However, studies such as Adegboye et al (2022); Brun et al (2020); Gnangnon and Brun (2018); Kpognon (2022); Shokrkhodaei and Salatin (2018); Teltscher (2002); Wandaogo (2022) attempted to address this issue by examining the factors likely to contribute to the mobilization of tax base. Much of this literature has focused on the effect of the Internet on tax revenues.…”

Section: Introductionmentioning

confidence: 99%

How does digitalization improve non-resource tax revenue mobilization? Evidence from developing countries

TINTA

2023

Preprint

View full text Add to dashboard Cite

This paper examines the effect of digitalization on non-resource tax revenue mobilization in developing countries. Panel data from 111 countries selected between 2005 to 2019 have enabled us to carry out econometric estimates based on fixed effects. Our empirical analysis uses the digitalization index composed of the ICT access and use index. The results suggest that digitalization positively influences non-resource tax revenue mobilization in developing countries. The results also support the view that access to ICT is a readiness phase for its usage. More interestingly, the favorable effect of digitalization is sensitive to the characteristics of developing countries, namely the level of economic development , the level of digitalization, and the quality of institutions. Furthermore, we use an instrumentalization strategy to correct the endogeneity bias that might result from our model. We use connectivity shocks linked to the telecoms infrastructure, i.e., technical failures of submarine cables. This connectivity shock minimizes the under-identification problem and clarifies the channels linking Internet diffusion and submarine cable connec-tivity. The results argue that countries with experience repairing these failures have a higher level of digitalization conducive to tax revenue mobilization. Furthermore, the results remain robust after further robustness tests (reverse causality and dynamic effect). These results support our argument that developing countries could benefit significantly from digitalization by adopting policies promoting ICT access. JEL Classification : H20; O11; 033; 055

show abstract

“…Digitalisation must be exploited to reap its possible advantages in revenue mobilisation. Notwithstanding the importance of ICT in tax revenue generation (de Mello & Ter-Minassian; Mallick, 2021), it is crucial to acknowledge that tax authorities in Africa face significant cost constraints and technological skills deficiencies in harnessing ICT (Adegboye et al, 2022;Eilu, 2018). According to Eilu et al (2021), the adoption of an array of online tax return services in SSA was targeted to enhance tax compliance and expand tax revenue generation for improved economic development and growth as well as infrastructural development.…”

Section: Harnessing Ict Digital Transformation and Other 4ir Toolsmentioning

confidence: 99%

Sustainable mobilisation of tax revenues to enhance economic growth in Sub-Saharan Africa: Challenges, opportunities, and possible areas of reform

Mpofu

2022

IJRBS

View full text Add to dashboard Cite

Domestic revenue mobilisation is fundamental if African countries are to fund investments in health, education, infrastructural development, economic growth, human capital development, security, and prosperity to attain the Sustainable Development Goals by 2030. Some goals focus on eradicating poverty, reducing inequalities, strengthening institutions, and providing decent work. This requires resources and investment, yet Sub-Saharan African countries continuously struggle to mobilise enough revenue to meet basic government objectives. Through a critical literature review, this paper focuses on sustainable tax revenue mobilisation in Sub-Saharan African Countries, discussing the challenges, opportunities, and prospects for possible amelioration of tax systems. Challenges identified to explain the ineffectiveness of revenue mobilisation in these countries include the presence of a significant informal sector, weak tax administration capacities, the growth in the digital economy, corruption, governance quality, and increased tax avoidance and evasion by multinational companies. Possible prospects include taxation of the digital economy, taxing the informal sector, the capacitation of tax authorities, and the broadening of tax bases.

show abstract

Driving information communication technology for tax revenue mobilization in Sub-Saharan Africa

Cited by 11 publications

References 38 publications

Is GRDP a mediating factor in enhancing local tax revenues due to ICT development in Indonesia?

Is GRDP a mediating factor in enhancing local tax revenues due to ICT development in Indonesia?

How does digitalization improve non-resource tax revenue mobilization? Evidence from developing countries

Sustainable mobilisation of tax revenues to enhance economic growth in Sub-Saharan Africa: Challenges, opportunities, and possible areas of reform

Contact Info

Product

Resources

About