informal tax

More effective taxation of the informal sector is an important long term goal, for reasons of equity and broader ‘tax morale’, to protect existing revenue bases, and to encourage formalisation in way that supports more rapid growth and, possibly, broader governance gains. 

Our work in this area aims to build a body of detailed empirical evidence about the experiences of informal sector taxation in the developing world. The research will focus on two related questions.

  • What are concrete strategies for improving informal sector taxation, focusing particularly on political dynamics and improving cooperation between central and local governments? 
  • How can informal sector taxes be implemented in ways that maximise equity, growth and governance benefits?

Commentary

Image: Aerial view of Monrovia, Liberia by United Nations Photo