The innovation of progressive taxation in the early 20th century accompanied some of the largest increases in tax revenue in Europe and the US and is a core feature of most tax systems in today’s developed countries. In developing countries, however, states often use simplified tax instruments that are comparatively much more regressive.
In partnership with Augustin Bergeron (Harvard), Arthur Laroche (UCL), Marina Ngoma (World Bank), Gabriel Tourek (University of Pittsburgh), and Jonathan Weigel (Berkeley), Dr Joana Naritomi's research team will explore the randomized introduction of progressive property taxation in the D.R. Congo, a low-income country with weak fiscal capacity. In collaboration with the Provincial Government of Kasaï-Central, our evaluation will compare neighborhoods in the city of Kananga assigned to either the existing flat fee schedule (control), a proportional tax rate schedule (treatment 1), or a schedule of progressive property tax rates (treatment 2).
The project will study effects on total revenue, household compliance, and perceptions of fairness and tax morale to inform the design at scale of a tax schedule that balances revenue and fairness.
Commenting on the award, Dr Joana Naritomi told the School of Public Policy: "This project examines the potential of progressive taxation to improve revenue generation and fairness in low-income countries with weak fiscal capacity. By providing rigorous evidence from the D.R. Congo, our work aims to inform broader policy discussions on the challenges of mobilising revenue with more equitable tax systems in contexts of limited tax compliance."
Join us in congratulating Joana and her team on their prestigious research grant! You can follow her on X for updates on the project.
Dr Joana Naritomi is an Associate Professor and the Academic Director of the LSE School of Public Policy. She is a Research Affiliate in BREAD, the CEPR Public Economics and Development Economics programmes, STICERD Public Economics, Institute for Fiscal Studies, International Growth Centre, and a JPAL-LAC Invited Researcher.