October 27, 2020
Jean-François Brun et al., « Are ICT's boosting tax revenues? Evidence from developing countries », Hyper Article en Ligne - Sciences de l'Homme et de la Société, ID : 10670/1.dbqzpc
This paper investigates the effect of ICT readiness and ICT usage on tax revenue mobilization in developing countries. The paper uses a panel fixed effect methodology on a sample of 96 developing countries from 2005 to 2016. We provide evidences that although ICT readiness affects positively tax revenue, the effect is not significant. However, overall ICT usage increase tax revenue. This positive and significant effect remains valid for various taxes: direct taxes and VAT notably. In addition, business, government and individual use of ICTs each have a greater effect on tax revenues than global ICT usage. Regarding the transmission channels, we find that the effect passes through the control of corruption, government effectiveness and tax compliance. Finally, taking into account the time dimension of the study, the positive effect is observed over the second half of the period under study rather than during the first.