Taxation In Fragile States: The Missing Piece Of The State Building Puzzle

This paper discusses the vexed issues of the challenges of domestic resource mobilization, especially in West Africa where tax expenditures have consistently eroded the revenue base of these countries making them susceptible to borrowing. The authors discuss the role of customs in securing trade revenues and preventing loss of domestic revenue, as well as examining the challenges of revenue mobilisation from the natural resources sector. The challenges of taxing the informal sector, which forms a significant part of taxpayers in West Africa are also discussed. The findings of the paper include the need for extensive taxpayer education to enhance voluntary tax compliance if domestic resource mobilisation is to be improved to enable governments of West African states build the needed state-citizen relationship by the state providing for the welfare of citizens.