Assessing the impact of tax administration reforms in Sub-Saharan Africa

Marina Ngoma Mavungu and Nikolina Krsic

MPRA Paper from University Library of Munich, Germany

Abstract: This proposal investigates the impact of adopting tax reforms such as the Value Added Tax (VAT), the Large Taxpayers Unit (LTU), and the Semi-Autonomous Revenue Agency (SARA) on tax revenue performance revenues in Sub-Saharan Africa. Despite the increasing adoption of these reforms, the literature on tax reforms effectiveness in Sub-Saharan is controversial. This proposal adds to the debate by using an Ordinary Least Square Fixed effect model controlling for countries and years fixed effects as well as a set of relevant covariates. We use a panel dataset of 46 countries from 1980 to 2013 and show that, in contrast to existing findings, there is no robust evidence that the three tax reforms increased tax collection performance in Sub-Saharan Africa. We find that controlling for time fixed effects and relevant covariates removes the statistical significance of all the tax reforms. Therefore, we conclude that there is little statistical robustness to support a significance of these reforms on tax collection in Sub-Saharan Africa.

Keywords: Tax reforms; Tax collection performance; Ordinary Least Square Fixed effect model; Sub-Saharan Africa; VAT; LUT; SARA. (search for similar items in EconPapers)
JEL-codes: H20 N47 O23 (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-acc and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:89275

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