GB-COH-954616-TaxDevIII Institute for Fiscal Studies TaxDev aims to contribute to more effective tax and social protection policymaking in low- and middle-income countries through partnerships with governments and researchers. We build new data resources and tools, and conduct skills training, applied policy analysis, and high-quality research. Taxation is the main source of revenue for governments, and funds vital public services, social protection policies and investments in infrastructure. Tax policy also has significant impacts on individuals and businesses, affecting their incomes, incentives and behaviour. Policymakers need to assess the effects of their tax and transfer systems and use relevant evidence in order to design policies which align with their objectives and foster economic development, poverty reduction and inclusive growth. Rigorous research and analysis are vital. TaxDev's work has two main components: 1. Country partnerships We collaborate with tax policy teams in finance ministries and revenue authorities in Ethiopia, Ghana, Nigeria, Kenya, Uganda and Rwanda to co-produce analyses of the key tax and transfer policy and administration issues that they face. The partnerships focus on increasing data resources, building technical skills though applied analysis, and encouraging the use of evidence in the policymaking process. In addition to assessing the revenue effects of polices, we work with partners to undertake analysis of the growth and distributional effects, and crucially to assess how specific policies impact upon low-income households. As well as informing decisions in particular policy areas, our co-production methodology aims to foster increased analytical capacity within government and support the development of sustainable models, tools and methods which can be used by partners over the long-term. 2. Research Underpinning our policy-oriented work with partners, TaxDev’s research explores the impacts of tax policy and administration on revenue raising capabilities, households, businesses and the economy more widely; and examines how tax policy design responds to changing economic and administrative constraints. Building on existing research, new empirical and theoretical findings, and insights from the policy work in our partner countries, we aim to generate high-quality evidence which will support governments to design tax systems which raise the revenues required to meet their spending needs, while balancing the trade-offs related to growth, investment and redistribution. We work with policymakers and researchers across a range of countries in Africa, Asia and South America and pay particular attention to the features of low- and middle-income countries – such as large informal and non-market sectors and more limited administrative capacity - that imply that the impact of, and rationale for, particular policies might differ from high-income countries. Foreign, Commonwealth Development Office (FCDO) Institute for Fiscal Studies Foreign, Commonwealth Development Office (FCDO) Institute for Fiscal Studies mailbox@ifs.org.uk https://ifs.org.uk/ https://www.taxdev.org/ 2 Marylebone Road, London, United Kingdom, NW1 4DF 1132718 1644612 2095138 1700000 1700000 1700000 164123 FCDO 88812 75311 138311 125203 263514 FCDO 306112 FCDO 152034 ODI Global 154708 398970 FCDO 237000 20227.08 UCL 161970 338193 FCDO 164798 173395 212196 ODI Global 242106 171571 454302 FCDO 236550 ODI Global 368706 FCDO 197135 483411 FCDO 226634 215321 ODI Global 193192 420529 FCDO 12016.25 UCL 12016.25 UCL 491566 FCDO 281867 ODI Global 197683 481349 FCDO 285456 ODI Global 14216.91 UCL 181676 701694 FCDO 395179 ODI Global 13615.33 292200