Kwami Obossou from CERDI unveils solutions to improve tax mobilization in Benin

Kwami Obossou's thesis, defended in 2024 at CERDI, reveals that West African countries, including Benin, struggle to exceed a tax collection level of 20% of GDP, well below the 33% of developed countries. His study highlights the potential of the banking sector to transform this dynamic and improve tax revenue collection.

Kwami Obossou's research addresses a major issue for developing countries: the mobilization of tax revenues. In a context where public aid is decreasing, it is crucial to find internal sources of financing. Currently, West African countries rely on indirect taxes for over 50%, raising questions about the fairness and sustainability of their tax system.

The study demonstrates that the banking sector can play a key role in improving tax mobilization. By analyzing the data, Obossou emphasizes that the potential for direct taxation remains largely untapped, particularly in terms of income tax. Currently, the tax collection level in these countries is 20%, well below that of developed countries.

The results of this research have strategic implications for policymakers. It is recommended to develop favorable tax policies and support reforms in the banking sector to improve access to financial services. This could transform tax collection and increase tax revenues, thus providing an opportunity for sustainable economic growth.

« « West African countries have a largely untapped potential for direct taxation, which could improve their tax collection level, currently at 20% of GDP. » »

« « Kwami Obossou's research opens interesting perspectives for policymakers seeking to strengthen tax mobilization and promote economic development in West Africa. » »