Tax Revenue Mobilization in Sub-Saharan Africa: Does the Independence of the Tax Administration Matter?

Franky Kogueda ()
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Franky Kogueda: Douala, Cameroon

No 26/032, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: The objective of this article is to analyze the effect of the independence of tax administrations in 40 sub-Saharan African countries on tax revenue mobilization between 2000 and 2022. It assesses how de jure and de facto independence influence the collection of direct and indirect taxes, using a seemingly unrelated model (SURE) and a linear double regression model. The findings reveal that de jure independence has a positive effect on direct tax mobilization. Specifically, the financial and regulatory autonomy of tax administrations positively impacts the direct tax burden. However, for indirect taxes, only organizational autonomy shows a significant effect on mobilization. The study also highlights that de facto independence, which reflects the quality of institutional practices, has a positive impact on both direct and indirect tax mobilization. The analysis concludes that simply granting autonomy to a revenue authority is not a guaranteed process for inefficient tax mobilization. Instead, the findings suggest that the most effective approach is to establish a tax administration that operates with the efficiency and management structure of a private entity. The study recommends that developing countries governments prioritize creating public administrations that are responsive and well-governed, particularly for the collection of direct taxes which are crucial for economic growth but remain low in Sub-Saharan Africa.

Keywords: Independence; Tax Revenue; Seemingly Unrelated Model; de jure; Autonomy; SARA (search for similar items in EconPapers)
Pages: 34 pages
Date: 2026-01
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http://publications.excas.org/RePEc/exs/exs-wpaper ... istration-Matter.pdf Revised version, 2026 (application/pdf)

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