Taxing the Informal Economy: Challenges, Possibilities and Remaining Questions

ICTD Research in Brief, Issue 3, October 2013

2 Pages Posted: 17 May 2014

See all articles by Anuradha Joshi

Anuradha Joshi

Independent

Wilson Prichard

University of Toronto - Institute of Development Studies (IDS)

Christopher Heady

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Date Written: October 1, 2013

Abstract

We are pleased to present the third in our new publication series, ICTD Research in Brief -- two-page summaries of our working papers edited to capture the main policy messages and aimed at policy makers, tax administrators, fellow researchers and anyone else who is big on interest and short on time. We hope you enjoy it. There is growing interest in taxing the informal economy in developing countries. This paper examines the case for giving it greater priority, and suggests that policymakers and researchers should focus less on technical design issues, and more on strategies to encourage compliance, and to increase political and institutional incentives for reform.

Keywords: Informal sector, revenue, equity, growth, governance, compliance, Research in Brief

Suggested Citation

Joshi, Anuradha and Prichard, Wilson and Heady, Christopher, Taxing the Informal Economy: Challenges, Possibilities and Remaining Questions (October 1, 2013). ICTD Research in Brief, Issue 3, October 2013, Available at SSRN: https://ssrn.com/abstract=2437518

Wilson Prichard

University of Toronto - Institute of Development Studies (IDS) ( email )

Library Road
Brighton, Toronto BN1 9RE
United Kingdom

Christopher Heady

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, MO 63108
France

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