Cover Staff Discussion Notes
Buy Book in Print
Building Tax Capacity in Developing Countries
Author:
Juan Carlos Benitez
Search for other papers by Juan Carlos Benitez in
Current site
Google Scholar Close
,
Mario Mansour
Search for other papers by Mario Mansour in
Current site
Google Scholar Close
,
Miguel Pecho
Search for other papers by Miguel Pecho in
Current site
Google Scholar Close
, and
Charles Vellutini
Search for other papers by Charles Vellutini in
Current site
Google Scholar Close
Series:
Staff Discussion Notes
Volume/Issue:
Volume 2023: Issue 006
Language:
English
Publication Date:
19 Sep 2023
DOI:
https://doi.org/10.5089/9798400246098.006
ISBN:
9798400246098
ISSN:
2617-6750
Pages:
32
Keywords:
Taxation; development; institutions; tax capacity; building tax analysis capacity; tax Effort estimate; tax potential; analysis capacity; VAT revenue; Tax administration core functions; Value-added tax; Property tax; Tax law; Global; Sub-Saharan Africa; Middle East and Central Asia; Western Hemisphere; Asia and Pacific
Legal-disclaimer:
Staff Discussion Notes (SDNs) showcase policy-related analysis and research being developed by IMF staff members and are published to elicit comments and to encourage debate.The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
Download PDF (4.6 MB) Download Epub
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. This Staff Discussion Note shows that developing countries have made some progress in revenue mobilization during the past decades. However, much more is needed. We find 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.
  • Collapse
  • Expand
Cover Staff Discussion Notes
Staff Discussion Notes
ISSN:
2617-6750
Publisher:
International Monetary Fund