## Building Tax Capacity in Developing Countries

_Staff Discussion Notes, September 19, 2023_

## Source details

**Canonical URL:** [Building Tax Capacity in Developing Countries](https://www.imf.org/en/publications/staff-discussion-notes/issues/2023/09/15/building-tax-capacity-in-developing-countries-535449)

## Other formats

- [Markdown version](/en/publications/staff-discussion-notes/issues/2023/09/15/building-tax-capacity-in-developing-countries-535449/index.md)
- [Structured JSON version](/en/publications/staff-discussion-notes/issues/2023/09/15/building-tax-capacity-in-developing-countries-535449/index.json)
- [Bundle manifest](/en/publications/staff-discussion-notes/issues/2023/09/15/building-tax-capacity-in-developing-countries-535449/bundle-manifest.json)

## 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**
  - [Staff Discussion Note (Markdown version)](/-/media/files/publications/sdn/2023/english/sdnea2023006.pdf.md){rel="alternate" type="text/markdown"}
  - [Staff Discussion Note (PDF)](/-/media/files/publications/sdn/2023/english/sdnea2023006.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/staff-discussion-notes/issues/2023/09/15/building-tax-capacity-in-developing-countries-535449_