Tax revenue mobilization effort in Southern African Development Community (SADC) bloc: Does ICT matter?
AbstractIn addition to performing their basic fiscal functions, governments in developing economies are constantly challenged by new and re-emerging socioeconomic issues such as insecurity, hunger, natural disaster, collapsing infrastructure and disease outbreaks. These piles of challenges have made...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2172810 |
| _version_ | 1797658402752561152 |
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| author | Olufunmilayo Olayemi Jemiluyi Leward Jeke |
| author_facet | Olufunmilayo Olayemi Jemiluyi Leward Jeke |
| author_sort | Olufunmilayo Olayemi Jemiluyi |
| collection | DOAJ |
| description | AbstractIn addition to performing their basic fiscal functions, governments in developing economies are constantly challenged by new and re-emerging socioeconomic issues such as insecurity, hunger, natural disaster, collapsing infrastructure and disease outbreaks. These piles of challenges have made the competition for limited resources fierce and hence the need to mobilize more funds. Bearing this in mind, this study explored the role of ICT in mobilizing tax revenue in a trade bloc made up of developing countries—Southern African Development Community (SADC). Using panel data of 12 member countries of the bloc between 2001 and 2020 within the Fully Modified OLS (FMOLS) framework, the estimated parameters of the employed measures of ICT (internet usage and mobile cellular) indicated that ICT has a statistically significant positive effect on tax revenue. The results are consistent for all categories of taxes examined including total tax revenue, taxes on goods and services, and taxes on income, profit and capital gains. Following the outcomes of this study, it is recommended that in addition to sound public finance policies, policies aimed at fostering digital automation of tax processes should be focal in revenue mobilization plans of member countries. |
| first_indexed | 2024-03-11T17:59:29Z |
| format | Article |
| id | doaj.art-ec1a03388e6e438394fa82c9ab48d6ea |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-11T17:59:29Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-ec1a03388e6e438394fa82c9ab48d6ea2023-10-17T10:51:05ZengTaylor & Francis GroupCogent Economics & Finance2332-20392023-12-0111110.1080/23322039.2023.2172810Tax revenue mobilization effort in Southern African Development Community (SADC) bloc: Does ICT matter?Olufunmilayo Olayemi Jemiluyi0Leward Jeke1Department of Economics, Nelson Mandela University, Summerstrand Campus South, Port Elizabeth, South AfricaDepartment of Economics, Nelson Mandela University, Summerstrand Campus South, Port Elizabeth, South AfricaAbstractIn addition to performing their basic fiscal functions, governments in developing economies are constantly challenged by new and re-emerging socioeconomic issues such as insecurity, hunger, natural disaster, collapsing infrastructure and disease outbreaks. These piles of challenges have made the competition for limited resources fierce and hence the need to mobilize more funds. Bearing this in mind, this study explored the role of ICT in mobilizing tax revenue in a trade bloc made up of developing countries—Southern African Development Community (SADC). Using panel data of 12 member countries of the bloc between 2001 and 2020 within the Fully Modified OLS (FMOLS) framework, the estimated parameters of the employed measures of ICT (internet usage and mobile cellular) indicated that ICT has a statistically significant positive effect on tax revenue. The results are consistent for all categories of taxes examined including total tax revenue, taxes on goods and services, and taxes on income, profit and capital gains. Following the outcomes of this study, it is recommended that in addition to sound public finance policies, policies aimed at fostering digital automation of tax processes should be focal in revenue mobilization plans of member countries.https://www.tandfonline.com/doi/10.1080/23322039.2023.2172810tax revenueICTpublic financedigital technologySouthern AfricaSADC |
| spellingShingle | Olufunmilayo Olayemi Jemiluyi Leward Jeke Tax revenue mobilization effort in Southern African Development Community (SADC) bloc: Does ICT matter? Cogent Economics & Finance tax revenue ICT public finance digital technology Southern Africa SADC |
| title | Tax revenue mobilization effort in Southern African Development Community (SADC) bloc: Does ICT matter? |
| title_full | Tax revenue mobilization effort in Southern African Development Community (SADC) bloc: Does ICT matter? |
| title_fullStr | Tax revenue mobilization effort in Southern African Development Community (SADC) bloc: Does ICT matter? |
| title_full_unstemmed | Tax revenue mobilization effort in Southern African Development Community (SADC) bloc: Does ICT matter? |
| title_short | Tax revenue mobilization effort in Southern African Development Community (SADC) bloc: Does ICT matter? |
| title_sort | tax revenue mobilization effort in southern african development community sadc bloc does ict matter |
| topic | tax revenue ICT public finance digital technology Southern Africa SADC |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2172810 |
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