Public revenue mobilisation for inclusive development

How can tax policies be used to increase economic growth and spur job creation? Working closely with the South African Revenue Service (SARS), researchers and policy practitioners explore the links between tax policy and economic growth. The work stream covers topics such as tax policy design and tax administration design, how COVID-19 impacted revenue collection, and how procurement procedures impact prices, quality, and corruption in public expenditure across the region.

In addition to the studies commissioned for this work stream, a primary goal will be to build the capacity to manage and use the tax administrative data which sits at the National Treasury and SARS. This work stream also invests in the future researchers and policymakers of the Southern African region by co-organizing a training in South Africa with UNU-WIDER’s Domestic Revenue Mobilization (DRM) programme. The UNU-WIDER Winter School on tax policy research provides early-career researchers in developing countries with a toolkit in applied public economics, with a special focus on the quantitative analysis of tax and public economics in developing countries.

Working paper
by Rebone Gcabo, Boitumelo Moche, Wynnona Steyn, Boikhutso Moahlodi, Jukka Pirttilä, Michael Noble, Gemma Wright, Helen Barnes, and Faith Masekesa
Using SAMOD, a tax-benefit model for South Africa, the paper examines the joint distributional impacts of the increase in the VAT rate and increases in benefit amounts that took place in 2018. The results demonstrate...
March, 2019
Public revenue
Working paper
by Seppo Kari, Londiwe Khoza, Nagamso Manjezi, and Kyle McNabb
The problem of debt bias can be tackled through either disincentivizing the use of debt financing or incentivizing the use of equity financing. Considering the South African context—in which many firms are highly leveraged and...
March 2019
Public revenue
Working paper
by Amina Ebrahim, Rebone Gcabo, Lilian Khumalo, and Jukka Pirttilä
This framing paper has two main purposes. We first provide a brief survey of the economic literature on taxation in South Africa. Second, we attempt to offer some ideas about areas and topics on which...
March, 2019
Public revenue