## Domestic Revenue Mobilization in Guinea-Bissau

_Selected Issues Papers, August 1, 2025_

## Source details

**Canonical URL:** [Domestic Revenue Mobilization in Guinea-Bissau](https://www.imf.org/en/publications/selected-issues-papers/issues/2025/08/01/domestic-revenue-mobilization-in-guinea-bissau-569210)

## Other formats

- [Markdown version](/en/publications/selected-issues-papers/issues/2025/08/01/domestic-revenue-mobilization-in-guinea-bissau-569210/index.md)
- [Structured JSON version](/en/publications/selected-issues-papers/issues/2025/08/01/domestic-revenue-mobilization-in-guinea-bissau-569210/index.json)
- [Bundle manifest](/en/publications/selected-issues-papers/issues/2025/08/01/domestic-revenue-mobilization-in-guinea-bissau-569210/bundle-manifest.json)

## Bibliographic details
- Authors: Nour Bouzouita
- Published: August 1, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229018869.018

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### Summary
- This paper quantifies Guinea-Bissau’s tax potential using a stochastic frontier model and investigates the underlying sources of untapped revenue.
- The analysis benchmarks performance against structural peers and distinguishes between structural constraints and policy or institutional gaps.
- It finds that Guinea-Bissau has significant scope to increase domestic revenue by broadening the tax base, enhancing compliance, and strengthening core tax functions.
- Targeted, sequenced reforms in administration and policy could help close the tax gap and support more sustainable, resilient public finances.

### Key findings
- Significant untapped revenue potential exists in Guinea-Bissau as identified by a stochastic frontier model.
- Main drivers of low revenue mobilization include:
  - high informality
  - administrative inefficiencies
  - a fragmented tax system
  - weak enforcement
- Closing the tax gap requires both addressing structural constraints and implementing policy/institutional reforms.

### Drivers of low revenue mobilization (detailed)
- High informality limits the taxable base.
- Administrative inefficiencies reduce effective collection and compliance.
- A fragmented tax system hampers coherent policy and administration.
- Weak enforcement contributes to revenue leakage and low compliance.

### Policy recommendations and reform priorities
- Broaden the tax base through measures that bring informal activity into the tax net.
- Enhance compliance via improved taxpayer services, registration, and monitoring.
- Strengthen core tax administration functions to reduce administrative inefficiencies.
- Sequence reforms to prioritize high-return measures that are administratively feasible and politically realistic.

### Methodology
- Tax potential quantified using a stochastic frontier model.
- Comparative benchmarking against structural peers to isolate policy-amenable gaps from structural constraints.

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## Content in this bundle

- **Tax Revenue in GNB and Peers**
  - [Tax Revenue in GNB and Peers (Markdown version)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025109.pdf.md){rel="alternate" type="text/markdown"}
  - [Tax Revenue in GNB and Peers (PDF)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025109.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/08/01/domestic-revenue-mobilization-in-guinea-bissau-569210_