Should Governments Tax Digital Financial Services? A Research Agenda to Understand Sector-specific Taxes on DFS

Authors: Mary Abounabhan, Laura Munoz, Giulia Mascagni, Wilson Prichard & Fabrizio Santoro
Publisher: ICTD
Date: June 2022


Research in Brief 77

Low-income countries are facing strong pressure to bring in more revenue at home. With digital financial services (DFS) rapidly expanding across Africa and other low-income countries a growing number are therefore considering new taxes on DFS. In light of the heated debate over DFS taxes, this paper explores the rationale for these taxes and their likely impacts in order to help governments and other stakeholders arrive at policies that best meet their competing needs.

Summary of Working Paper 136 by Mary Abounabhan, Laura Munoz, Giulia Mascagni, Wilson Prichard, and Fabrizio Santoro.