Showing 1 - 12 of 51 publications
June 2022

Small Nets for Big Fish? Tax Enforcement on the Richest – Evidence from Uganda

by Fabrizio Santoro & Ronald Waiswa

Appropriately taxing the richest is a priority for every government, even more so in Africa, where higher revenue mobilisation is needed to fund growth. In Uganda, the revenue authority launched a specific unit to monitor the tax affairs of the richest individuals. Thanks to a close collaboration with the Uganda Revenue Authority (URA), we evaluate…

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No smoking gun: tobacco taxation and smuggling in Sierra Leone

by Giovanni Occhiali & Max Gallien

Objective To evaluate the common industry claim that higher tobacco taxation leads to higher levels of smuggling, particularly in a limited state capacity setting. Design This paper evaluates the effects of a tobacco tax increase in Sierra Leone on smuggling by using gap analyses. Its models are based on multiple rounds of the Demographic and…

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The Likely Fiscal and Public Health Effects of an Excise Tax on Sugar sweetened Beverages in Kenya

by Corné van Walbeek & Senzo Mthembu

Historically, non-communicable diseases (NCDs) have typically been associated with tobacco and alcohol use. However, in recent decades increased levels of overweightness and obesity, mostly caused by poor eating habits and a sedentary lifestyle, have increased diabetes, cancers, and cardiovascular diseases. There is a general agreement that sugar sweetened beverages (SSBs) are bad for one’s health….

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April 2022

The Economic Impact of the Pandemic in Rwanda: An Analysis of Firm-Level VAT Data

by Giulia Mascagni & Adrienne Lees

There are substantial differences in the spread of the Covid-19 pandemic and policy responses to it between high- and low-income countries. While evidence on the former is growing, there remain more unanswered questions on the latter. This paper addresses this gap by providing insights on the impact of the pandemic in Rwanda, based on firm-level…

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December 2021

Informal Workers and the State: The Politics of Connection and Disconnection During a Global Pandemic

by Max Gallien & Vanessa van den Boogaard

In low- and middle-income countries, informal workers are particularly vulnerable to the health and economic effects of the Covid-19 pandemic and often neglected by policy responses. At the same time, the crisis is rapidly changing the ways that states engage with informal workers. We argue that the relationships between informal workers and states – and…

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November 2021

Assessing the Equity and Redistributive Effects of Taxation Reforms in Nigeria

by Henry C. Edeh

Achieving the Sustainable Development Goals (SDGs) of poverty and inequality reduction through redistribution have indeed become critical concerns in many low- and middle-income countries, including Nigeria. Although redistribution results from the effect of tax revenue collections, micro household-level empirical analyses of the distributional effect of personal income tax (PIT) and value added tax (VAT) reforms…

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More on the Positive Fiscal and Health Effects of Increasing Tobacco Taxes in Nigeria

by Corné van Walbeek, Adedeji Adeniran & Iraoya Augustine

Nigeria is faced with substantial economic and health burdens caused by tobacco smoking. The economic burden of smoking accounts for approximately 1.3 per cent of Nigeria’s GDP. In terms of its health impact, 4.9 per cent of all deaths in 2019 were attributed to smoking related diseases. The thousands of Nigerians that die annually from…

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Fuel subsidy reform and the social contract in Nigeria: A micro-economic analysis

by Neil McCulloch, Tom Moerenhout & Joonseok Yang

Fuel subsidies in Nigeria are enormous – around USD 3.9 billion – almost double the health budget. Such subsidies come at great cost: the opportunity costs of such spending on other development objectives are large; the distribution of resources to the state governments is reduced; the vast majority of the subsidy goes to better off Nigerians; and…

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Using administrative data to assess the impact of the pandemic in low-income countries: An application with VAT data in Rwanda

by Giulia Mascagni & Adrienne Lees

This paper uses administrative data from Value Added Tax (VAT) returns to provide insights on the impact of the COVID-19 pandemic in Rwanda. We show that the lockdown in Rwanda had a severe impact on the domestic economy, despite relatively low case numbers. However, the economy quickly rebounded after restrictions were lifted, with overall sales…

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March 2021

Explaining Informal Taxation and Revenue Generation: Evidence from south-central Somalia

by Vanessa van den Boogaard & Fabrizio Santoro

Most people in low-income countries contribute substantially to the financing of local public goods through informal revenue generation (IRG). However, very little is known about how IRG works in practice. We produce novel evidence on the magnitude and regressivity of IRG and its relationship with the state in a fragile context, Somalia. We rely on…

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November 2020

Fiscal and Public Health Impact of a Change in Tobacco Excise Taxes in Ghana

by Ama Pokuaa Fenny, Aba Obrumah Crentsil, Christian Kwaku Osei & Felix Ankomah Asante

Cigarettes have generally become less affordable over time in developed economies, with increased taxes and low income growth, but more affordable in developing countries, where there have been minimal changes in taxes (Chaloupka et al. 2019). Studies by the WHO suggest that 80% of the world’s smokers live in low- and middle-income countries (LMICs), and…

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