The Centre for Tax Analysis in Developing Countries (TAXDEV) at the IFS is a new initiative, funded by the UK’s Department for International Development (DfID), that aims to contribute to more effective tax policy making in developing countries through applied research and policy analysis and a focus on improving the analytical capacity of developing country governments.
The centre's work programme consists of two main components.
Researchers from the DfID-funded Centre for Tax Analysis in Developing Countries (TAXDEV) at the IFS have completed their most recent trip to Ghana’s Ministry of Finance as part of our collaborative research and capacity development programme. During this visit (7th to 11th August), as well as continuing work on costing proposed tax policies in Ghana, TAXDEV researchers and staff at the Tax Policy Unit (TPU) of the Ghanaian Ministry of Finance (MoF) co-organised four days of workshops and meetings with a delegation of Ethiopian tax policymakers and administrators. These were attended by eight key officials from both the Ethiopian Revenue and Customs Authority (ERCA) and the recently established Tax Policy Directorate (TPD) of the Ethiopian Ministry of Finance and Economic Cooperation (MOFEC), as well as officials from Ghana’s MoF and Revenue Authority (GRA).
The first two days consisted of joint workshops on policy costing and analysis. David Phillips (Associate Director, IFS) and Ross Warwick (Research Economist, IFS) outlined an approach to policy costing and in a series of presentations, group discussions and exercises applied these to example VAT and corporate income tax policy reforms. The final two days provided an opportunity for peer-to-peer discussions between the Ethiopian and Ghanaian teams on a variety of issues including tax policy and tax policy analysis, management and capacity building, and cooperation between ministries and revenue authorities.
The workshops and meetings were successful in facilitating frank and open conversations about the relative merits of the Ethiopian and Ghanaian tax systems and institutions, and fostering cross-country learning and collaboration.
Researchers from the Centre for Tax Analysis in Developing Countries (TAXDEV) at the Institute for Fiscal Studies (IFS) are collaborating with the recently established Tax Policy Directorate (TPD) of the Ministry of Finance and Economic Cooperation (MOFEC) of the Federal Democratic Republic of Ethiopia on tax policy and administration analysis and capacity building. The collaboration is funded by the Department for International Development as part of the IFS TAXDEV initiative.
On Tuesday the 1st August 2017, TAXDEV and the TPD co-organised a one-day workshop with over 40 key stakeholders, including senior officials from the Ethiopian Revenue and Customs Authority (ERCA) and regional tax revenue authorities, to discuss challenges with Value Added Tax (VAT) and Turnover Tax (TOT) policy and administration in Ethiopia. TAXDEV researchers discussed the main principles that should guide the design and administration of a good tax system - and VAT and TOT in particular - as well as relevant international experience around VAT and TOT policy and administration issues. The workshop was fruitful in facilitating and strengthening the collaboration between the TPD, ERCA and other stakeholders. The importance of using high quality administrative and survey data to formulate evidence-based policy options in this tax area was emphasised. The workshop provided a forum for participants to agree on a range of policy and administration challenges in the current VAT and TOT system that need further consideration, and to identify areas for further quantitative modelling.
Event | 15 March 2017
Low income countries typically raise less than 20% of their GDP from taxation, and this affects their ability to invest in human capital and infrastructure, foster equitable growth and reduce poverty. Domestic revenue mobilisation is gaining prominence in the international debate about economic development, however, and is vital to the post-2015 Sustainable Development Goals agenda.
At an event on 15 March 2017 IFS researchers will introduce TAXDEV’s programme of research and analysis.
News | 9 June 2016
As part of a new collaboration on tax policy analysis and capacity building between the IFS, the Ghana Revenue Authority (GRA) and Ghana Ministry of Finance (MOF), Mr Charles Addae (the Assistant Commissioner for Tax Analysis and Revenue Forecasting at the GRA), Mr Seth Akuffo (Reseacher at the Tax Policy Unit, MOF) and colleagues visited the IFS.