Tax and Governance in the Context of Scarce Revenues: Inefficient Tax Collection and its Implications in Rural West Africa

Abstract

The expansion of the ‘tax net’ has commanded considerable domestic and international policy attention as a means of financing essential services, reducing dependence on international aid, and producing positive ‘government dividends.’ A growing body of research, however, questions the logic of extending the tax base, particularly among individuals and businesses in the urban informal economy, highlighting the associated revenue inefficiencies, negative equity implications, and lack of a direct relationship between tax payment and government accountability.