Pre-colonial centralization and tax compliance norms in contemporary Uganda

Oppel, Annalena; McNabb, Kyle; Chachu, Daniel

doi:10.35188/unu-wider/2021/132-7

Cited by 2 publications

(2 citation statements)

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“…First, we show that tax capacity in SSA has improved since 1985on average, countries are achieving potential and converging towards the regional tax performance normand this is associated with increasing tax/GDP ratios since the late 1990s. Oppel et al (2022) note that although SSA has low tax/GDP ratios relative to other developing regions, the majority of SSA countries have increased tax/ GDP since 2000. 1 Conditioning on the most important structural determinants of tax performance, the majority of SSA countries are now closer to achieving their potential revenue, given choices made about tax rates and coverage.…”

Section: Introductionmentioning

confidence: 99%

Institutions and tax capacity in sub-Saharan Africa

Tagem

Morrissey

2023

Journal of Institutional Economics

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This paper contributes to research on the institutional determinants of tax capacity using annual data from 39 sub-Saharan African countries from 1985 to 2018 to construct a measure of tax capacity for each country based on the trend component of the ratio of actual to potential tax revenue. Potential revenue is estimated by a parsimonious tax performance specification, including only variables found to be robust determinants of the tax/GDP ratio. The results show that, on average, tax capacity is high (given potential) and has improved over time (especially for low-income countries). The final stage of analysis selects, from a wide variety of economic and institutional variables, the most important determinants of cross-country variation in tax capacity. Equal distribution of resources is the most important institutional factor associated with greater capacity, consistent with perceptions of equity supporting the fiscal bargain; corruption is associated with lower capacity, consistent with undermining trust in government. Private consumption and resource rents are associated with greater capacity. Other institutional factors are indirectly associated with greater capacity, such as accountability and elements of democracy associated with equity in the allocation and use of public resources.

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Section: Introductionmentioning

confidence: 99%

Institutions and tax capacity in sub-Saharan Africa

Tagem

Morrissey

2023

Journal of Institutional Economics

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“…Average revenue/GDP in SSA fell from around 14 per cent in the early 1980s to 11 per cent in the mid-1990s, rising back to 14 per cent by 2009 and over 15 per cent in the mid-2010s; trade tax revenues fell from the mid-1980s; direct tax revenues began to increase from the late 1990s and indirect taxes from the mid-2000s (Gwaindepi 2021: Figures 1 and 3). From around 2000, non-trade taxes and tax/GDP improved, with Oppel et al (2022) noting that although SSA has low tax/GDP ratios relative to other developing regions, the majority of SSA countries have increased tax/GDP since the early 2000s.…”

Section: Introductionmentioning

confidence: 99%