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Tax Coordination, Tax Competition, and Revenue Mobilization in the West African Economic and Monetary Union

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  • Mario Mansour
  • Mr. Gregoire Rota Graziosi

Abstract

We review the current state of the West African Economic and Monetary Union’s 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. Nevertheless, the framework has, to some extent, succeeded in converging tax systems, particularly statutory tax rates, and may have contributed to improving revenue mobilisation. Important lessons can be drawn from the WAEMU experience, particularly in terms of whether coordination should take the form of harmonization through a top-down approach, or a softer approach of sharing best practice and limiting certain types of tax competition.

Suggested Citation

  • Mario Mansour & Mr. Gregoire Rota Graziosi, 2013. "Tax Coordination, Tax Competition, and Revenue Mobilization in the West African Economic and Monetary Union," IMF Working Papers 2013/163, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2013/163
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    Cited by:

    1. International Monetary Fund, 2014. "Mali: Technical Assistance Report - Automatic Fuel Pricing Mechanism," IMF Staff Country Reports 2014/031, International Monetary Fund.
    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. 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.
    4. 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.
    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

    Keywords

    WP; excise tax; coordination framework; WAEMU state; tax competition; tax coordination; tax harmonization; competition model; tax cooperation; depreciation rule; government credibility; harmonization experience; tax coordination framework; term tax coordination; WAEMU member states; Corporate income tax; Value-added tax; Excises; West Africa;
    All these keywords.

    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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