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Tax administration and domestic revenue mobilisation : an african perspective
Thesis (PhD)--Stellenbosch University, 2024.
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Stellenbosch : Stellenbosch University
2025
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| _version_ | 1867613894108774400 |
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| access_status_str | Open Access |
| author | Mackenzie, Onesmo Kaiya |
| author2 | Jansen, Ada |
| author_browse | Jansen, Ada Mackenzie, Onesmo Kaiya |
| author_facet | Jansen, Ada Mackenzie, Onesmo Kaiya |
| author_sort | Mackenzie, Onesmo Kaiya |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description | Thesis (PhD)--Stellenbosch University, 2024. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/131811 |
| institution | Stellenbosch University (South Africa) |
| last_indexed | 2026-06-10T12:43:23.129Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/131811 Tax administration and domestic revenue mobilisation : an african perspective Mackenzie, Onesmo Kaiya Jansen, Ada Siebrits, Krige Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Economics. Tax collection -- Corrupt practices -- Africa Tax administration and procedure -- Corrupt practices -- Africa Finance, Public -- Corrupt practices -- Africa Taxation -- Corrupt practices -- Africa UCTD Thesis (PhD)--Stellenbosch University, 2024. ENGLISH SUMMARY: Despite decades of political independence, African countries continue to face challenges in financing essential public expenditures. Africa's fiscal capacity, which encompasses the government's ability to raise resources and provide public services, remains constrained, primarily due to insufficient domestic revenue generation. Prolonged limited fiscal capacity has made external support a prominent source of revenue. However, global economic downturns like the 2008 financial crisis and the COVID-19 pandemic have rendered dependence on external support unreliable and unsustainable. Ongoing debates stress the role of improving tax administrations to achieve domestic revenue mobilisation (DRM) and attain sustainable global development. Strengthening tax administration grants the government expanded access to resources essential for economic and social progress. The United Nations (UN) considers DRM to be a key ingredient in the attainment of the Sustainable Development Goals (SDGs) by the year 2030. Hence, improving tax administration is a key requirement for achieving DRM to provide public services, ensure social welfare, and invest in infrastructure. Recognising tax administration as a primary tool for achieving DRM, African countries strive to strengthen their tax administration strategies. However, regardless of varying levels of development, tax revenue as a percentage of gross domestic product (GDP) remains persistently low across the African continent. This dissertation answers the following general research question: How can African countries improve tax administration to achieve domestic revenue mobilisation? The specific questions are as follows: 1) How (technically) efficient are African tax administrations in collecting tax revenue? 2) What factors affect the X-efficiency of African tax administrations? and 3) How can African tax administrations mobilise more revenue through personal income tax? The dissertation addresses these questions through several objectives spread across three distinct but interlinked chapters. Chapter 2 uses administrative data spanning 2012 to 2021 to estimate the technical efficiency of tax administration in 29 African countries and identify the driving factors behind this efficiency. Employing stochastic frontier analysis (SFA) and data envelopment analysis (DEA), this chapter broadens efficiency conceptualisation to include both collection costs and institutional structure. It draws on tax compliance theories, Tax Administration Diagnosis Assessment Tool (TADAT) reports and literature to explore the factors influencing this efficiency. The findings suggest widespread inefficiencies in African tax administrations, highlighting the potential for performance improvement through institutional reforms. These reforms could include enhancing the taxpayer registration database, strengthening deterrence mechanisms, increasing responsiveness to taxpayers, and addressing corruption among tax officials. Chapter 3 extends the analysis from Chapter 2, exploring the determinants of X-efficiency within African tax administrations. While technical efficiency assumes that organisations optimise inputs to achieve maximum output, X-efficiency acknowledges that maximising output is not automatic. It measures an organisation's willingness to pursue and achieve optimal output. This chapter conducts an in-depth analysis through a case study approach, focusing on Uganda and South Africa and using publicly available information. The conceptual framework draws on agency theory to unveil the different principal-agent relationships among revenue mobilisation stakeholders impacting revenue generation. Chapter 3’s findings indicate that the X-efficiency of African tax administration is shaped by political leadership; principal-agent dynamics among government, tax administration, and employees; as well as internal governance and reform implementation. Chapter 4 employs panel data techniques and case studies of South Africa, Malawi, Burkina Faso and Togo to explore ways African tax administrations can enhance their tax revenue through personal income tax (PIT). The emphasis falls on examining institutional and tax compliance aspects within both the PIT and the African contexts. The empirical analysis reveals that public spending, government effectiveness, and colonial legacy significantly influence revenue generation via the PIT. The case studies highlight the significance of colonial legacy, elite dynamics and tax administration in personal income tax revenue collection. The dissertation provides opportunities to improve tax administration towards domestic revenue mobilisation by broadening the conceptualisation of tax administration efficiency in Africa, and its application to lesser used output variables. It reveals complex government-tax administration-employee dynamics and explores the role of the elite in generating revenue through personal income tax. The thesis emphasises the impact of both quantifiable and unquantifiable factors and relationships on African tax administration and domestic revenue mobilisation. AFRIKAANSE OPSOMMING: Afrikalande staar ten spyte van dekades van politieke onafhanklikheid steeds uitdagings in die gesig met betrekking tot die finansiering van noodsaaklike staatsuitgawes. Afrika se fiskale kapasiteit, wat die regering se vermoe om bronne te mobiliseer en openbare dienste te verskaf omvat, bly beperk, hoofsaaklik vanwee onvoldoende binnelandse inkomstegenerering. Langdurige beperkte fiskale kapasiteit het buitelandse hulp ‘n prominente bron van inkomste gemaak. Wereldwye ekonomiese afswaaifases soos die finansiele krisis van 2008 en die COVID-19-pandemie het afhanklikheid van buitelandse hulp egter onbetroubaar en onvolhoubaar gemaak. Voortgaande debatte beklemtoon die rol van die bevordering van binnelandse hulpbronmobilisering (BHM) vir die skepping van fiskale kapasiteit en die verwesenliking van volhoubare ontwikkeling vir die wereld as geheel. Die versterking van fiskale kapasiteit verleen die regering toegang tot bronne wat noodsaaklik vir ekonomiese en maatskaplike vooruitgang is. Die Verenigde Nasies (VN) beskou BHM as ʼn sleutelbestanddeel vir die bereiking van die Volhoubare Ontwikkelingsdoelwitte teen die jaar 2030. Verbeterde belastingadministrasie is dus ʼn sleutelvereiste vir die skepping van die fiskale kapasiteit wat nodig is om openbare dienste te lewer, sosiale welvaart te verseker, en in infrastruktuur te bele. Afrikalande het besef dat belastinginkomste die primere instrument vir die bereiking van BHM is en streef daarna om hulle belastingmobiliseringstrategiee te versterk. Belastinginkomste bly egter ongeag verskille in vlakke van ontwikkeling hardnekkig laag as ʼn persentasie van die bruto binnelandse produk (BBP) regoor die vasteland van Afrika. Hierdie verhandeling maak gebruik van data wat in die openbare domein is om die volgende algemene navorsingsvraag te beantwoord: Hoe kan Afrikalande belastingadministrasie verbeter ten einde binnelandse hulpbron-mobilisering te verbeter? Die spesifieke vrae is soos volg: 1) Hoe (tegnies) doeltreffend is belastingagentskappe in Afrika met die insameling van belastinginkomste? 2) Watter faktore beinvloed die X-doeltreffendheid van belastingagentskappe in Afrika? 3) Hoe kan Afrikalande hulle inkomste uit die persoonlike inkomstebelasting verhoog? Die verhandeling pak hierdie vrae aan deur middel van verskeie doelwitte wat oor drie afsonderlike dog verweefde hoofstukke versprei is. Hoofstuk 2 gebruik administratiewe data wat van 2012 tot 2021 strek om die tegniese doeltreffendheid van belastingadministrasie in 29 Afrikalande te beraam en die dryfvere van sodanige doeltreffendheid te identifiseer. Hierdie hoofstuk, wat van stogastiese grensontleding (“stochastic frontier analysis” oftewel “SFA”) en data-omhullingsontleding (“data envelopment analysis”, oftewel “DEA”) gebruik maak, verbreed die konseptualisering van doeltreffendheid om insamelingskoste sowel as die institusionele struktuur in te sluit. Dit benut belastingnakomingsteoriee, TADAT- ("Tax Administration Diagnosis Assessment Tool") verslae en geskrifte om die faktore wat sodanige doeltreffendheid beinvloed, te ondersoek. Die bevindinge dui op wydverspreide ondoeltreffendheid in belastingagentskappe in Afrika wat die ruimte vir prestasieverbetering deur middel van institusionele hervormings onderstreep. Sodanige hervormings kan die verbetering van die belastingbetalersdatabasis, versterking van afskrikmeganismes, sterker gehoorgewing aan belastingbetalers, en die aanpak van korrupsie onder belastingamptenare insluit. Hoofstuk 3 brei die ontleding in Hoofstuk 2 uit deur die determinante van X-doeltreffendheid in belastingagentskappe in Afrika te ondersoek. Waar tegniese doeltreffendheid aanvaar dat organisasies insette optimaal gebruik om uitset te maksimeer, gee X-doeltreffendheid toe dat uitsetmaksimering nie vanselfsprekend is nie. Dit meet ʼn organisasie se gewilligheid om die optimale uitset na te streef en te bereik. Die hoofstuk onderneem ʼn diepgaande ontleding deur middel van ʼn gevallestudiebenadering wat op Uganda en Suid-Afrika konsentreer en gebruik maak van inligting wat in die openbare domein beskikbaar is. Die konsepsuele raamwerk benut agentskapsteorie om die veelvoudige prinsipaal-agent-verhoudings tussen belanghebbendes wat inkomstemobilisering beinvloed, bloot te le. Die bevindinge van Hoofstuk 3 dui daarop dat die X-doeltreffendheid van belastingagentskappe in Afrika gevorm word deur politieke leierskap; die prinsipaal-agent-dinamiek tussen die regering, belastingagentskap en werknemers; sowel as interne bestuur en die implementering van hervormings. Hoofstuk 4 gebruik paneeldata-tegnieke en gevallestudies van Suid-Afrika, Malawi, Burkina Faso en Togo om maniere te ondersoek waarmee Afrikalande hulle belastinginkomste deur middel van die persoonlike inkomstebelasting (PIB) kan uitbrei. Die klem val op die naspeuring van institusionele en belastingnakomingsaspekte binne beide die PIB- en Afrika-kontekste. Die empiriese ontleding onthul dat owerheidsbesteding, die effektiwiteit van die staat en koloniale nalatenskappe die mobilisering van inkomste deur die PIB wesenlik beinvloed. Die gevallestudies beklemtoon die belangrikheid vir die insameling van persoonlike inkomstebelasting van die koloniale nalatenskap, die dinamika van elite-groepe en belastingadministrasie. Die verhandeling bied ʼn platform om belastingadministrasie vir binnelandse inkomstemobilisering te verbeter deur die konseptualisering van die doeltreffendheid van belastingadministrasie in Afrika te verbreed en met minder ontginde veranderlikes te ontleed. Dit onthul die komplekse dinamika van verhoudings tussen die owerheid, die belastingagentskap en werknemers en ondersoek die rol van elite-groepe in die mobilisering van inkomste deur die persoonlike inkomstebelasting. Die verhandeling beklemtoon die invloede op belastingadministrasie en binnelandse inkomstemobilisering in Afrika van beide kwantifiseerbare en nie-kwantifiseerbare faktore en verwantskappe. Doctoral 2025-03-28T13:30:31Z 2025-03-28T13:30:31Z 2024-12 Thesis https://scholar.sun.ac.za/handle/10019.1/131811 Stellenbosch University xviii, 154 pages : illustrations, includes annexures application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Tax collection -- Corrupt practices -- Africa Tax administration and procedure -- Corrupt practices -- Africa Finance, Public -- Corrupt practices -- Africa Taxation -- Corrupt practices -- Africa UCTD Mackenzie, Onesmo Kaiya Tax administration and domestic revenue mobilisation : an african perspective |
| title | Tax administration and domestic revenue mobilisation : an african perspective |
| title_full | Tax administration and domestic revenue mobilisation : an african perspective |
| title_fullStr | Tax administration and domestic revenue mobilisation : an african perspective |
| title_full_unstemmed | Tax administration and domestic revenue mobilisation : an african perspective |
| title_short | Tax administration and domestic revenue mobilisation : an african perspective |
| title_sort | tax administration and domestic revenue mobilisation an african perspective |
| topic | Tax collection -- Corrupt practices -- Africa Tax administration and procedure -- Corrupt practices -- Africa Finance, Public -- Corrupt practices -- Africa Taxation -- Corrupt practices -- Africa UCTD |
| url | https://scholar.sun.ac.za/handle/10019.1/131811 |
| work_keys_str_mv | AT mackenzieonesmokaiya taxadministrationanddomesticrevenuemobilisationanafricanperspective |