Enhancing Tax Capacity: Revenue Gains from Strengthening Tax Administration
IMF Working Papers, October 24, 2025
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- Canonical URL
- Enhancing Tax Capacity: Revenue Gains from Strengthening Tax Administration
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Bibliographic details
- Authors: Jean-Marc Atsebi, Nikolay Gueorguiev, Manabu Nose
- Published: October 24, 2025
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229029827.001
Methodology and Data
- Scope: analysis of 121 countries over the period 2014–2022.
- Empirical strategy:
- Construct an Operational Strength Index of tax administration using the International Survey on Revenue Administration (ISORA).
- Use an instrumental variable strategy based on the IMF Fiscal Affairs Department’s Capacity Development programs to identify causal effects.
- Publication specifics noted on the landing page: 75 pages; Volume: 2025; Issue: 219; Working Paper No. 2025/219; DOI: https://doi.org/10.5089/9798229029827.001; Stock No: WPIEA2025219; ISBN: 9798229029827; ISSN: 1018-5941.
Main Findings
- Strengthening tax administration significantly boosts tax revenue.
- Effects are particularly strong in:
- Emerging and developing economies.
- Countries with lower levels of informality.
- Countries with stronger institutions.
- Countries with higher financial development.
Policy-Relevant Conclusions
- Investments in tax administration capacity are an effective channel to mobilize revenue and strengthen public finances.
- Development partners and governments should prioritize capacity development programs that target operational strengths captured by ISORA metrics.
- Policy design should account for country characteristics:
- Larger revenue gains expected where informality is lower.
- Complementary reforms to improve institutional quality and financial development can amplify returns to tax administration strengthening.
Keywords and Thematic Coverage
- Administration in revenue administration; administration practice; Financial sector development; Fiscal Affairs Department seminar; Global; governance quality; IMF working papers; ISORA; Revenue mobilization; Tax Administration; Tax administration core functions; tax capacity; Tax Policy.
Jean-Marc Atsebi, Nikolay Gueorguiev, and Manabu Nose. "Enhancing Tax Capacity: Revenue Gains from Strengthening Tax Administration", IMF Working Papers 2025, 219 (October 24, 2025).
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- Working Paper