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Centre for Tax Analysis in Developing Countries (TAXDEV)

The Centre for Tax Analysis in Developing Countries (TAXDEV) at the IFS aims to contribute to more effective tax policy making in low- and middle-income countries through applied research and policy analysis and a focus on improving the analytical capacity of partner governments. TAXDEV is funded by the UK's Department for International Development (DFID).

The centre's work programme consists of two main components.

  • The first involves working with governments and other stakeholders in Ethiopia and Ghana – to co-produce modelling tools and analyses of the key tax and benefit policy and administration issues that these countries face. 

Find out more about TAXDEV and its programme of work.


The Department for International Development (DFID) has renewed funding for the Centre for Tax Analysis in Developing Countries (TAXDEV) until November 2022. TAXDEV is based at the Institute for Fiscal Studies and aims to contribute to more effective tax and social protection policy-making in low- and middle-income countries.

The second phase of TAXDEV will be delivered jointly by the IFS and the Overseas Development Institute (ODI), who have a long track record of building the capability of governments to develop, implement and evaluate tax and spending policies.

TAXDEV provides applied ...


Ration shops allow households to purchase limited quantities of certain goods at subsidised prices, and are used by governments in a numbre of low and middle income countries. In a new IFS working paper, Lucie Gadenne shows theoretically that such systems can be better for household welfare than a universal cash transfer scheme if the goods in question are consumed in relatively large quantities by the poor and if the market prices for them are volatile.

Using data from India, where ration shops are prevalent, she shows that this may be true for three of the four goods sold through the ...


In the UK, the IFS plays a leading role in informing the public debate and scrutinising government and opposition tax and spending policy decisions and proposals. David Phillips, an Associate Director at the IFS who works in both the TAXDEV centre and on devolved and local government, explained this role to a delegation of Tajiki parliamentarians and auditors tasked with scrutinising tax and spending in Tajikistan. He talked about the various types of work the IFS does, from immediate commentary to major programme evaluation to fundamental economic research, how it disseminates this to a ...


This week, Ghana's Ministry of Finance has organised and run a training  workshop for civil servants from the Ministry and the Revenue Authority on GHATAX, the microsimulation model built by the IFS's TAXDEV team for Ghana. The model, built in conjunction with Ministry staff, allows analysts to examine the revenue and distributional impacts of tax and transfer policies and policy reforms, and is designed to provide additional information to the policymaking process. Understanding the impact of policies on households with different characteristics (e.g. high, middle and low incomes) is key ...


As in many high income countries, developing countries often exempt or apply reduced rates of VAT to food and other goods and services in an effort to limit the impacts of VAT on poorer households' cost of living. But with richer households often consuming far more of these goods in absolute terms, and developing countries expanding their cash transfer and social protection schemes, are there better ways to support poorer households?

In a new video, Ross Warwick, a research economist at the IFS, talks about ongoing research being carried out alongside Commitment to Equity Institute ...


Department for International Development
The Department for International Development (DFID) is the part of the UK Government that manages Britain's aid to poor countries and works to get rid of extreme poverty.
Economic and Social Research Council (ESRC)
The Economic and Social Research Council (ESRC) is the UKs leading research funding and training agency addressing economic and social concerns.