what have we learned about tax and governance? by wilson prichard
TRANSCRIPT
What Have We Learned About Tax and Governance?
WilsonPrichardResearchDirector
Interna3onalCenterforTaxandDevelopment
The Tax-Governance Connection
Expandedtaxa3onmaycontributetoimprovedgovernanceintwokeyways:1. Taxa3onmaybecomeleadingedgeof
buildingstatecapacity
2. Taxa3onmayspur‘taxbargaining’andexpandedresponsivenessandaccountability
An Agenda for Action
“Weshouldelevateourselvesfrombeingjusttaxcollectorsandtaxadministratorstobeingstatebuilders”-UgandaRevenueAuthorityCommissionerGeneralAllenKaginaatthelaunchofATAF
The ProblemThesetax-governanceconnec3onsarepowerfulintheory,buttheyremainrela3velyabstract:1. Whatexactlydotheseprocesseslooklikeinprac3ce?
2. Whatarethepolicyimplica3ons,forthoseseekingtolinktaxtobroadergovernancegains?
Cri3cally,theseposi3veconnec3onsarenotguaranteed,butdependonpolicyandcontext–andthusexpliciteffortstostrengthentheselinks
Tax and Statebuilding
Wes3llhavelimitedevidenceonhowthisworks,butseveralkeyelementsnowclear:1. DemonstraGoneffects:Taxagenciespioneer
newprocesses2. Spillovereffects:Improvingtaxa3onrequires
parallelimprovementselsewhere3. InformaGonsharingeffect:Taxdatasupports
beNerpolicy,andotherdatasupportstax
Tax and Accountability
Strongevidenceofdiversityandcomplexityofrelevantprocesses:1. Directtaxbargaining:Governmentsand
taxpayersmakereciprocalcommitments2. StrengthenedCivilSociety:Taxspurs
organizingandengagement3. SustainedTaxResistance:Resistanceto
unpopulartaxa3oncreatesreformpressure
Building Local Government
Alloftheseprocessescanbepar3cularlystrongatthelocalgovernmentlevel,wheretaxisclosetoci3zensandgovernmentcapacitylimited.But….Strengtheningcoopera3vetaxcollec3onatlocalleveloUenpar3cularlydifficultowingtoweakincen3ves,elitecapture,weakcollec3veac3onandwidespreadinformality
Policy Implications: Statebuilding
1) Buildstronglinksbetweentaxagenciesandrelatedbranchesingovernment
2) Emphasizeeffec3vedatagathering,andonsharingdataacrossgovernment,
3) Emphasizebureaucra3creformsthatcouldbereplicatedelsewhereingovernment–likemeritocra3chiring,orperformanceevalua3on–ratherthanmakingRAsislands;
4) Strengthenlinksbetweencentralandlocaladministra3ons
Policy Implications: Accountability
1. Enhancethepoli3calsalienceoftaxa3on–includingviadirecttaxes
2. Focusonhorizontalequityintaxenforcement3. Expandtransparencyaroundtaxa3onand
budge3ng–including,possibly,someearmarking
4. Directlysupportpopularengagement,includinginclusiveins3tu3onalspacesfortaxbargaining
The Road Forward1. Focusresearchnotontheabstract
rela3onship,butprac3calimplica3ons
2. Scopetofurtherexploretheimplica3onsofthesetypesofpolicymeasuresinprac3ce,includingpartnershipswithgovernments
3. Expandresearchincreasinglytothelocal
governmentlevelaswell