Building Tax Capacity in Developing Countries
Staff Discussion Notes, September 19, 2023
Source details
- Canonical URL
- Building Tax Capacity in Developing Countries
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Bibliographic details
- Authors: Juan Carlos Benitez, Mario Mansour, Miguel Pecho, Charles Vellutini
- Published: September 19, 2023
- Series: Staff Discussion Notes
- DOI: https://doi.org/10.5089/9798400246098.006
Summary
- Tax capacity—the policy, institutional, and technical capabilities to collect tax revenue—is part of a deeper process of state building that is essential for achieving the sustainable development goals.
- Developing countries have made some progress in revenue mobilization during the past decades, but much more is needed.
- The note finds that a staggering 9 percentage-point increase in the tax-to-GDP ratio is feasible through a combination of tax system reform and institutional capacity building.
- Achieving this calls for a holistic and institution-based approach that focuses on improving policy, administration and legal implementation of core taxes.
- The note offers practical lessons and guidance based on IMF capacity building experience in this area.
Key findings and statistics
- Feasible revenue mobilization: 9 percentage-point increase in the tax-to-GDP ratio through tax system reform and institutional capacity building.
- Publication length: 32 pages.
- Series and identifiers:
- Series: Staff Discussion Notes No. 2023/006
- Issue: 006
- Volume: 2023
- DOI: https://doi.org/10.5089/9798400246098.006
- Stock No: SDNEA2023006
- ISBN: 9798400246098
- ISSN: 2617-6750
- Publication date on page: September 19, 2023.
- Authors: Juan Carlos Benitez, Mario Mansour, Miguel Pecho, Charles Vellutini.
Thematic coverage
- Core themes covered:
- Tax administration core functions
- Tax policy and Tax law
- Value-added tax (VAT) and VAT revenue
- Property tax
- Revenue administration
- Broader links to state building and sustainable development goals
- Geographic and topical scope reflected in keywords:
- Asia and Pacific; Middle East and Central Asia; Sub-Saharan Africa; Western Hemisphere; Global
- Development, institutions, tax capacity, tax potential, tax effort estimate
Practical guidance and institutional focus
- Recommended approach:
- Holistic, institution-based reforms that integrate policy, administration, and legal implementation.
- Emphasis on improving policy design, strengthening tax administration, and ensuring legal enforceability of core taxes.
- Basis for recommendations:
- Practical lessons and guidance drawn from IMF capacity building experience in tax capacity building.
Access and formats noted on the page
- Available as a Staff Discussion Note.
- Also available in français.
- Landing page indicates options to Download PDF, visit the IMF eLibrary, and other publication-format and citation actions.
Building Tax Capacity in Developing Countries, Staff Discussion Notes 2023, 006; Juan Carlos Benitez, Mario Mansour, Miguel Pecho, and Charles Vellutini; September 19, 2023; DOI: https://doi.org/10.5089/9798400246098.006
Content in this bundle
- Staff Discussion Note