Selected Issues Papers

Domestic Revenue Mobilization in Guinea-Bissau

By Nour Bouzouita

August 1, 2025

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Format: Chicago

Nour Bouzouita. "Domestic Revenue Mobilization in Guinea-Bissau", Selected Issues Papers 2025, 109 (2025), accessed August 2, 2025, https://doi.org/10.5089/9798229018869.018

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Summary

This paper quantifies Guinea-Bissau’s tax potential using a stochastic frontier model and investigates the underlying sources of untapped revenue. Beyond benchmarking performance against structural peers, it tackles the complex drivers of low revenue mobilization, including high informality, administrative inefficiencies, a fragmented tax system, and weak enforcement. The analysis distinguishes between structural constraints and policy or institutional gaps, offering a nuanced diagnosis of where reforms can yield the greatest returns. It finds that Guinea-Bissau has significant scope to increase domestic revenue by broadening the tax base, enhancing compliance, and strengthening core tax functions. Targeted, sequenced reforms in administration and policy could help close the tax gap and support more sustainable, resilient public finances.

Subject: Corporate income tax, Fiscal policy, Income tax systems, Personal income tax, Revenue administration, Revenue mobilization, Revenue performance assessment, Tax administration core functions, Tax collection, Tax gap, Taxes, Value-added tax

Keywords: Corporate income tax, Domestic revenue mobilization, Fiscal policy, Income tax systems, Personal income tax, Public debt, Resilience and Sustainability Facility, Revenue mobilization, Sales tax, Tax administration core functions, Tax capacity, Tax collection, Tax gap, Tax reform, Value-added tax

Publication Details

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