This presentation reviews three recent studies about building tax capacity in the Democratic Republic of Congo. The first shows that a door to door property taxation campaign increased property tax compliance and political participation. The second compares the effects of tax collection between local elites and state agents, showing that tax collection by local elites increased tax compliance because local elites used local information to efficiently target households with high payment propensities. The third examines the effects of a policy experiment that randomly assigned 38,028 property owners to the status quo tax rate or to a rate reduction. The policy experiment found that reducing tax rates by about one-third would maximize government revenue through increased tax compliance, but substantially increasing revenue may require increasing tax rates in tandem with enforcement to increase compliance.
Recording available here. See also Dr. Weigel's website for more information.