This is a 2-page summary of ICTD Working Paper 6. There is growing interest among development policymakers in taxation, both as a crucial source of revenue for development and because taxation is central to economic growth, redistribution and broader state-building and governance goals. The Working Paper explores the direct impact of donor supported tax reform efforts; the indirect impact of aid and related donor policies on domestic tax effort; the potentially perverse effects of tax-related conditionality; and the impact of broader donor policies including global tax arrangements. It makes detailed recommendations about future donor support for tax reform.
Prichard, W.; Brun, J.F.; Morrissey, O. ICTD Research in Brief, Issue 4: Donors, Aid and Taxation in Developing Countries - An overview. International Centre for Tax and Development (ICTD), (2013) 2 pp.