The Promise and Limitations of Information Technology for Tax Mobilisation
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Research in Brief 82
As digital technologies continue gaining momentum in Africa and lower-income countries, more and more tax authorities are adopting them to improve their core functions and collect revenue more efficiently. This paper reviews recent literature on using technology for tax administration. Technology has the potential to improve tax collection in three areas: identifying the tax base, monitoring compliance, and facilitating compliance. But even the most user-friendly technology will hardly function without basic infrastructure and a stable internet connection. The potential benefits of new technology are further hampered by resistance from taxpayers and collectors, an unsupportive regulatory environment and lack of strategy for adoption by institutions. We close by proposing reforms to ensure investments in new technology improve efficiency and revenue collection.
Celeste Scarpini is a Research Officer at the ICTD, and a PhD student at the Department of Economics, University of Sussex. Her main research interests relate to tax administration in sub-Saharan Africa, from technology adoption to data management and revenue collection strategies.
Oyebola Okunogbe is an Economist in the World Bank Development Research Group, with a focus on topics in the intersection of development economics, public finance and political economy. She is also affiliated with the Bureau of Research and Economic Analysis of Development (BREAD), Centre for Economic Policy Research (CEPR), Institute for Fiscal Studies (IFS), and the Nigerian Tax Research Network.
Fabrizio is a Research Fellow at the Institute of Development Studies, and the Research Lead for the second component of the ICTD's DIGITAX Research Programme. His main research interests relate to governance, public finance, and taxation, with a strong focus on impact evaluation methodologies and statistical analysis. He holds a PhD in Economics from the University of Sussex.
Citation: Scarpini, C.; Okunogbe, O.; and Santoro, F (2022) The Promise and Limitations of Information Technology for Tax Mobilisation, ICTD Research in Brief 82, Brighton: Institute of Development Studies, DOI: 10.19088/ICTD.2023.005
