Working Paper
Of Governance and Revenue : Participatory Institutions and Tax Compliance in Brazil

Total Downloads*
*All language versions across World Bank Repositories (updated daily)
*All language versions across World Bank Repositories (updated daily)
5356
Download

Published
2019-03
Metadata
Abstract
Traditionally, governments seek to mobilize tax revenues by expanding their enforcement of existing tax regimes and facilitating tax payments. However, enforcement and facilitation can be costly and produce diminishing marginal returns if citizens are unwilling to pay their taxes. This paper addresses gaps in knowledge about tax compliance, by asking a basic question: what explains why citizens and businesses comply with tax rules? To answer this question, the paper shows how the voluntary adoption of two different types of participatory governance institutions influences municipal tax collection in Brazil. Municipalities that voluntarily adopt participatory institutions collect significantly higher levels of taxes than similar municipalities without these institutions. The paper provides evidence that moves scholarship on tax compliance beyond enforcement and facilitation paradigms, while offering a better assessment of the role of local democratic institutions for government performance and tax compliance.Citation
“Touchton, Michael; Wampler, Brian; Peixoto, Tiago. 2019. Of Governance and Revenue : Participatory Institutions and Tax Compliance in Brazil. Policy Research Working Paper;No. 8797. World Bank, Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/31492 License: CC BY 3.0 IGO.”
Users also downloaded
-
-
-
Related items
Showing items related by title, author, creator and subject.
-
-
-
Follow World Bank Publications on Facebook, Twitter or Linked-In