Taxation is the main source of revenue for governments and funds vital public services and infrastructure. Tax also has significant impacts on individuals and businesses, affecting their incomes, incentives and behaviour. Effective tax policy and administration are therefore key building blocks of economic growth, economic development and well-functioning government. But effective policy-making relies on evidence on the impacts of different policies on revenues, and the incomes and behaviour of taxpayers. Research, analysis and analytical capacity are therefore vital.
The Centre for Tax Analysis in Developing Countries (TAXDEV) at the IFS is funded by the UK’s Department for International Development (DFID) and 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 governments. The centre was established in response to the relative paucity of theoretical and empirical evidence in relation to tax policy in low- and middle-income countries.
TAXDEV was officially launched on 1st February 2016. Its work programme consists of two main components:
This website is updated to include information on specific projects and outputs as they are developed and published. In addition, TAXDEV builds on the research and analysis of tax and benefit policies in low- and middle-income countries undertaken by IFS for a number of years.