Taxing the Informal Economy: Challenges, Possibilities and Remaining Questions

Authors: Anuradha Joshi, Wilson Prichard & Christopher Heady
Publisher: ICTD
Date: October 2013


ICTD Research In Brief 3

There is growing interest in taxing the informal economy in developing countries. This paper examines the case for giving it greater priority, and suggests that policymakers and researchers should focus less on technical design issues, and more on strategies to encourage compliance, and to increase political and institutional incentives for reform.