Taxation Analysis in Togo and Benin

Government revenue mobilization remains a major development challenge in sub-Saharan Africa. ECOPA is commissioned by the World Bank with analyzing taxation in Togo and Benin with the aim of producing reform options. The intervention includes the following components:

  • Analysis of trends and composition of revenues (by tax and by industry), and estimation of revenue elasticity with respect to GDP growth;
  • Tax potential analysis: on the basis of a panel multi-country regression, what is the potential of Togo and Benin in terms of revenue mobilization?
  • For each tax instrument  (VAT, CIT, PIT, excise duties, etc.), how efficient is tax collection, comparing statutory tax rates with the observed effective tax rates?
  • Who pays the taxes? Analysis and distribution of revenue by sector, type of taxpayer and tax instrument.
  • Analysis of tax expenditures (incentives and tax and customs exemptions) by industry and by type of taxpayer.

The diagram below summarizes the intervention logic.

 

Intervention logic

 

For the World Bank (2018).