EconPapers    
Economics at your fingertips  
 

The sources of VAT gaps in WAEMU: case studies on Benin and Burkina Faso

Romain Houssa (), Kelbesa Megersa and Roukiatou Nikiema ()
Additional contact information
Roukiatou Nikiema: Ouaga II University

No 122, BeFinD Working Papers from University of Namur, Department of Economics

Abstract: This paper examines the performance of the Value-Added Tax (VAT) in Benin and Burkina Faso since its introduction in the early 1990s. Both countries are witnessing a gradual rise in tax revenue over the study period. The paper also delivers a sectoral breakdown of inefficiencies in VAT-revenue collection in the two countries. We additionally decompose VAT gap in to ‘compliance gap’ and the ‘policy gap’. We find that the sectors responsible for ‘compliance gap’ are largely similar in the two countries. The gaps in VAT collection represent a considerable loss in potential tax revenue. Addressing them will support the ‘Domestic Resource Mobilization’ (DRM) efforts of the two countries.

Keywords: Value-Added Tax (VAT); Domestic Resources Mobilization (DRM); Tax Reform; Institutional Quality; Economic development (search for similar items in EconPapers)
JEL-codes: H20 H21 H25 H26 O17 O11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc, nep-iue and nep-pbe
Date: 2017-10
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.befind.be/Documents/WPs/wp22 First version, 2017 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nam:befdwp:0122

Access Statistics for this paper

More papers in BeFinD Working Papers from University of Namur, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Marie-Helene Mathieu ().

 
Page updated 2019-11-12
Handle: RePEc:nam:befdwp:0122