Tax Expenditure Reporting as a Commitment Device for Revenue Mobilization

  • CategoryPolicy briefs
  • Published on15 October 2026
  • PublishersFerdi
    Evidence from Emerging and Developing Countries
    • This note shows that publishing tax expenditure reports increases tax revenue mobilization over the medium term in emerging and developing countries.
    • The results indicate that this effect emerges six to seven years after publication and is driven primarily by direct taxes.
    • The effect is stronger when reports are published more frequently and on a regular basis. It is also more pronounced in low-income countries and in sub-Saharan Africa.
    • Publishing tax expenditure reports acts as a commitment mechanism. By making tax exemptions visible, it raises the political cost of opaque exemptions and gradually strengthens the government’s capacity to steer tax policy.
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    Citation

    Dama A. A., Geourjon A.-M., Tape G. (2026) “Tax Expenditure Reporting as a Commitment Device for Revenue Mobilization”, FERDI Policy Brief B299, October.

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