The Impact of taxation on human welfare in developing countries in Sub-Saharan Africa 2000 to 2020

Author

Jasi, Nathan

Title

The Impact of taxation on human welfare in developing countries in Sub-Saharan Africa 2000 to 2020

Abstract

This dissertation aims to investigate the impact of taxation on human welfare in SSA from 2000 to 2020.The objectives of the research are to analyze the impact of taxation on human welfare in SSA, including its effects on poverty, inequality, and access to essential social services , to identify the key factors that shape the relationship between taxation and human welfare in SSA, including tax policy, administration, and institutional factors, to evaluate the effectiveness of tax policies and administration in promoting human welfare in SSA, including their impact on fiscal capacity and redistribution and to assess the potential of taxation to address key social challenges in SSA, including poverty, inequality, and climate change. Using aggregate data on human development index (HDI), tax revenue, income tax rate, tax administration efficiency index and value added tax (VAT) for countries in Sub-Suharan Africa (SSA), the study employed quantitative methodology approach to estimate the research problem. The results indicate that progressive income taxation and efficient tax administration positively impact human development outcomes, emphasizing the importance of considering both aspects when designing and implementing tax policies. In addition, consumption taxes, such as value-added tax, play a crucial role in revenue generation, however their impact on human development is less clear, underscoring the need for a balanced tax structure. Based on the findings of the study, the research concludes by recommending Policy-makers to design a balanced tax structure that incorporates both progressive income taxation and consumption taxes, such as value-added tax (VAT). This approach can promote revenue generation while supporting human development outcomes.

Date

June 2024

Publisher

BUSE

Keywords

Taxation

Revenue generation

Human welfare

Supervisor

N/A