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Journal Article

The Journal of Development Studies 50.10

Taxing the Informal Economy: The Current State of Knowledge and Agendas for Future Research

Published on 26 August 2014

This paper reviews the literature on taxation of the informal economy, taking stock of key debates and drawing attention to recent innovations. Conventionally, the debate on whether to tax has frequently focused on the limited revenue potential, high cost of collection, and potentially adverse impact on small firms. Recent arguments have increasingly emphasised the more indirect benefits of informal taxation in relation to economic growth, broader tax compliance, and governance.

More research is needed, we argue, into the relevant costs and benefits for all, including quasi-voluntary compliance, political and administrative incentives for reform, and citizen-state bargaining over taxation.

Cite this publication

Anuradha Joshi, Wilson Prichard & Christopher Heady (2014) Taxing the Informal Economy: The Current State of Knowledge and Agendas for Future Research, The Journal of Development Studies, 50:10, 1325-1347, DOI: 10.1080/00220388.2014.940910

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Authors

Image of Anuradha Joshi

Anuradha Joshi

Research Fellow

Image of Wilson Prichard

Wilson Prichard

IDS Research Fellow and ICTD Chief Executive Officer

Publication details

authors
Joshi, A., Prichard, W. and Heady, C.
journal
The Journal of Development Studies, volume 50, issue 10
language
English

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