Impact of Institutional Quality on Tax Revenue in Côte d’Ivoire
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Date
2021-11-12
Authors
Beyera, Isabelle
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
Using Gill’s (2000) conceptual framework, the present study is an institutional analysis
aimed at explaining the low level of tax revenue in Côte d’Ivoire. It is based on data
collected from the DPPSE of the country’s Ministry of Economics and Finance, from
the Central Bank of West African States, from the World Bank, and from various
institutional reports and semi-structured interviews carried out with the staff of
the two tax administration general directorates in Côte d’Ivoire (the DGI and the
DGD). The study shows how crucial enhanced institutional quality is for raising tax
revenue in Côte d’Ivoire, notably revenue from indirect taxes. Indeed, a low level of
institutional quality, coupled with high levels of corruption, has contributed to a poor
tax-collection performance, which in turn has hindered the two tax administration
general directorates’ work in terms of tax auditing, tax collection, and tax-base
assessment. As a result, there have been low levels of tax returns, payment of the key
taxes and recovery of tax arrears. In addition, the magnitude of tax exemptions, and
of the informal sector, has led to a reduction in the tax base and has created avenues
for corruption within the tax administration system
Description
Keywords
Institutional quality; , Tax revenue; , Côte d’Ivoire.