Research Theme
Informality and Tax
While research has historically focused on formal systems of taxation and user fees, there is mounting evidence of the importance of “informal” taxation for average taxpayers in much of Africa. While lying outside of statutory laws, the “tax-like” payments – which include informal user fees, informal contributions to community development projects, and informal payments to both state and non-state officials – impose a significant burden on many taxpayers, while playing a critical role in financing local public goods and services and shaping broader local governance.
Our research aims to map the extent, composition and experiences of these payments, and to understand their implications for livelihoods, fiscal decentralisation, service delivery and broader local governance reform. One strand of our work looks closely at taxation in fragile settings, examining the challenges, risks, and opportunities it presents for peacebuilding, state-building, and citizen engagement.
We have also established a Community of Practice on Informality and Tax, a global network of practitioners and scholars committed to improving both knowledge and policy on how tax authorities engage with informal economies.
Key Resources
Informality and Tax Library
Can trading licenses unlock Uganda’s presumptive tax potential?
Ethiopia’s presumptive tax system: why daily sales estimation needs rethinking
Taxing the informal economy: should businesses formalise or should tax systems adapt?
Roadblock taxation: the dangers of extra-legal payments in Ethiopia
How faith and culture shape accountability in Nigeria’s informal tax system
In early October, I was in Cape Town for the 10th ATAF Annual Congress, where I presented my paper on…
Zimbabwe’s informal sector – more carrots than sticks are needed
Discussing fairer approaches to taxing the informal sector
The first ATI–ICTD webinar on tax and informality brought together research, workers’ experiences, and The Gambia’s reform plans to discuss…
ICTD partners with ATI to advance evidence-based approaches to tax and informality
ICTD launches report on 15 years of research and the future of development finance
The International Centre for Tax and Development (ICTD) has officially released its major report, Taxing Smarter: Advancing Reform Through Research…
From Afghanistan to Venezuela, new research shows how roadblocks shape governance and everyday life in conflict contexts
ICTD convenes stakeholder workshop on informal taxation in The Gambia
ICTD signs new partnerships for largest study of market taxation in Accra
In person
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Timezone: Europe/Helsinki
Virtual
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Timezone: Europe/London
We are thrilled to officially launch the ‘Routledge Handbook of Smuggling’ with an introduction by its editors, some of its authors, and a discussion of key issues in the contemporary study of smuggling. Confirmed speakers: Max Gallien, Research Fellow, Institute
Virtual
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Timezone: Europe/London
This upcoming webinar, Informal taxation and community-driven development: Evidence from south-central Somalia, is part of a series of 5 seminars on Tax and Development jointly organised by the Chr. Michelsen Institute and the TaxCapDev-network. The webinar series features ongoing research
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COVID-19 has had a huge impact on the health and economies of countries all over the world. Some of the hardest hit have been low-income informal sector workers. This event will discuss the impacts the global pandemic has had so
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