Country partnerships

Our partnerships with the Governments of Ethiopia and Ghana focus around the co-production of modelling tools and the analyses of key tax and benefit policy and administration issues. In both countries we have worked closely with partner governments to establish research and policy priorities, map and source administrative and survey data, and assess and develop appropriate analytical tools.

Ethiopia

In Ethiopia we are working with the Tax Policy Division at the Fiscal Policy Directorate of the Ministry of Finance and Economic Cooperation (MoFEC).

Ghana

In Ghana we have established relationships with the Revenue Policy Division at the Ministry of Finance and Economic Planning (MoFEP) and the Ghana Revenue Authority (GRA). 

Our work in Ghana is currently focused around the following priorities: 

1. The construction of a micro-simulation model of Ghana’s tax and transfer system.

This model will facilitate the simulation of real and hypothetical changes to taxes and transfers on individual households. It will allow a wide range of policies to be examined, both as part of the policy formation process in advance of the annual budget, or as part of more systematic reviews of the design of Ghana’s tax and transfer system.

The model will allow the RPD and GRA to examine:

  • The distributional effects of the tax and benefit system – including on vulnerable and female-headed households
  • The revenue effects of a variety of different possible reforms
  • The incentive effects (for example to work, consume or under- or misreport income) 

2. Providing support to the tax policy costing process

The Government of Ghana is currently reviewing a number of features associated with its existing tax laws, and the IFS team is supporting the RPD to develop structured and evidence-based responses to key tax policy questions. 

3. Collecting revenue data to support the analytical process

Vital to conducting high quality analysis is the availability of, and access to, administrative and survey data. It has been important to be realistic and cautious about the types of research and policy questions that it is feasible to answer given data limitations in low and middle income countries. Particular challenges have arisen with regards to accessing electronic data on small and medium taxpayers, linking taxpayers across tax bases, the reliability of both household and firm incomes and expenditures data, and the ability to track transactions along the VAT chains. In order to overcome some of these challenges, we are working with the RPD and GRA to design and implement a data capture exercise. Newly digitized data will be available for analysis to allow researchers and civil servants to better understand the underlying characteristics of taxpayers and the heterogeneous impacts of tax policy reforms.