Beneficial impact of tax reforms on tax revenue performances in Togo: Myth or reality?

Abstract

AbstractTax reforms are often motivated by their potential to improve tax revenue mobilization. However, their actual impacts are difficult to quantify. Using cross‐country panel data over the period 2000–2021, this article evaluates the impact of the 2012 tax reforms on tax revenue performance in Togo. We follow the Synthetic Control Method (SCM) estimation procedures. After comparing the observed evolution of Togo's tax revenue output in the period 2013–2021 with that of synthetic Togo, our estimates show that an accumulated yearly average gain is about 3.09% of GDP. Hence, the article concludes that after 9 years of reform, the improvement in Togo's tax performance is remarkable. However, more tax‐related and institutions‐related reforms are crucial to make Togo's tax system more buoyant and sustainably improve tax revenue mobilization.