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Tax coordination, tax competition, and revenue mobilization in the west african economic and monetary union

Author

Listed:
  • Mario MANSOUR

    (Fiscal Affairs Department - International Monetary Fund)

  • Grégoire ROTA-GRAZIOSI

    (Ferdi)

Abstract

We review the current state of the West African Economic and Monetary Union’s (WAEMU) tax coordination framework, against the main objectives of the WAEMU Treaty of 1994: reduce distortions to intra-community trade, and mobilize domestic tax revenue. The process of tax coordination in WAEMU is one of the most advanced in the world—de jure at least—, but remains in many areas ineffective de facto. The framework has, to some extent, ucceeded in converging tax systems, particularly statutory tax rates, and may have contributed to improving revenue mobilization. Important lessons can be drawn from the WAEMU experience, especially in terms of whether coordination should take the form of harmonization through a topdown approach, or a softer approach of sharing best practice and limiting certain types of harmful tax competition.

Suggested Citation

  • Mario MANSOUR & Grégoire ROTA-GRAZIOSI, 2013. "Tax coordination, tax competition, and revenue mobilization in the west african economic and monetary union," Working Papers P81, FERDI.
    • Handle: RePEc:fdi:wpaper:1170
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    References listed on IDEAS

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    Cited by:

    1. Maïmouna DIAKITE & Jean-François BRUN & Souleymane DIARRA & Nasser ARY TANIMOUNE, 2017. "The effects of tax coordination on the tax revenue mobilization in West African Economic and Monetary Union (WAEMU)," Working Papers 201712, CERDI.
    2. Hermann D. Yohou & Michaël Goujon & Wautabouna Ouattara, 2016. "Heterogeneous Aid Effects on Tax Revenues: Accounting for Government Stability in WAEMU Countries," Journal of African Economies, Centre for the Study of African Economies, vol. 25(3), pages 468-498.
    3. Mr. Bernardin Akitoby & Mr. Jiro Honda & Hiroaki Miyamoto & Keyra Primus & Mouhamadou Sy, 2019. "Case Studies in Tax Revenue Mobilization in Low-Income Countries," IMF Working Papers 2019/104, International Monetary Fund.
    4. International Monetary Fund, 2014. "Mali: Technical Assistance Report - Automatic Fuel Pricing Mechanism," IMF Staff Country Reports 2014/031, International Monetary Fund.
    5. Ayoki, Milton, 2017. "Estimating the Revenue Impacts of Tax Harmonisation," MPRA Paper 83548, University Library of Munich, Germany.
    6. Krishanu Karmakar & Jorge Martinez-Vazquez, 2014. "Fiscal Competition versus Fiscal Harmonization: A Review of the Arguments," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1431, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    7. AfDB AfDB, . "African Development Report 2014 – “Leveraging Regional Integration for Inclusive Growth”," African Development Report, African Development Bank, number 2171, August.
    8. Remme, Michelle & Siapka, Mariana & Sterck, Olivier & Ncube, Mthuli & Watts, Charlotte & Vassall, Anna, 2016. "Financing the HIV response in sub-Saharan Africa from domestic sources: Moving beyond a normative approach," Social Science & Medicine, Elsevier, vol. 169(C), pages 66-76.
    9. Ali Compaore, 2020. "Access-for-all to Financial Services: Non- resources Tax Revenue-harnessing Opportunities in Developing Countries," Working Papers hal-02901664, HAL.

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    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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