In recent years, domestic revenue mobilisation in developing countries gained increasing prominence in the policy debate. Several factors explain this, including the potential benefits of taxation for statebuilding; independence from foreign aid; the fiscal effects of trade liberalisation; the financial and debt crisis in the “West”; and the acute financial needs of developing countries. Governments in developing countries face great challenges in mobilising tax revenues, which result in a gap between what they could collect and what they actually collect. Tax gaps are hard to quantify for reasons that are discussed in the report. However in is known that significant contributors to tax gaps include tax evasion and avoidance, tax exemptions, and inequitable rent-sharing in the extractive sector, amongst others. The report discusses European and international actions to improve revenue mobilisation in developing countries and it suggests some recommendations for future.


Giulia Mascagni

Giulia Mascagni is a Research Fellow at the Institute of Development Studies and Research Director of the ICTD. Her main area of work is taxation, but she also has research interest in public finance, evaluation of public policy, and aid effectiveness. She is an economist by training, holding a PhD in Economics from the University of Sussex. Her main geographical interest lies in African countries, with a particular focus on Ethiopia and Rwanda.

Mick Moore

Mick Moore is a Professorial Fellow at the Institute of Development Studies and the founding CEO of the International Centre for Tax and Development. He is a political economist whose broad research interests are in the domestic and international dimensions of good and bad governance in poor countries, focusing specifically on taxation in Asia and Africa.

Rhiannon McCluskey

Rhiannon is the Director of Communications and Impact for the International Centre for Tax and Development, based at the Institute of Development Studies.
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