Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Before Formalization: Attitudes toward Government, Taxation and Governance Alternatives in Lagos's Informal Sector

12 views

Published on

Presentation by Adrienne LeBas and Nonso Obiliki at the second annual Nigerian Tax Research Network meeting which took place in Abuja on 24th and 25th November 2018.

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

Before Formalization: Attitudes toward Government, Taxation and Governance Alternatives in Lagos's Informal Sector

  1. 1. Before Formalization: Attitudes toward Government, Taxation, and Governance Alternatives in Lagos’s Informal Sector Adrienne LeBas1 Nonso Obikili2 1American University 2Turgot Centre for Economics and Policy Research October 24, 2018
  2. 2. The broader question: why do citizens pay tax? Part of a broader project (with co-PIs:Adrienne LeBas and Jessica Gottlieb) on the drivers of business formalization and tax compliance EGAP Metaketa II Taxation: common arm is encouragement intervention (information about costs and benefits of formalization); secondary arm varies tax appeals Do citizens respond differently to tax appeals based on (1) content of the appeal and (2) identity of the actor delivering the appeal ”Carrots versus sticks” → are citizens more likely to respond to public goods or to threats of enforcement? LIRS versus marketplace associations → are appeals more credible when delivered by socially embedded actors (marketplace association)?
  3. 3. Research Structure Qualitative survey: of markets Baseline survey: To identify vendors who will partiticapte and to get cut current level of compliance and relationship with marketplace associations and other information. Interventions. First intervention: Information and assistance Second Intervention: Visits with LIRS and MPAs Endline survey: Measure impacts. Focus of presentation is the qualitative and baseline survey.
  4. 4. Figure: Research Design
  5. 5. Interesting questions to examine at baseline Are marketplace associations as important as we think? Is this true across markets? In the absence of the state, social institutions often play important roles in policing order & delivering services (e.g., Cammett 2014; Cammett & Maclean 2014) These institutions can have consequential effects on attitudes toward the state (e.g., Bodea & LeBas 2016) or interactions with it (e.g., Tsai 2007).
  6. 6. How was data collected? Combined list of all markets in Lagos from various sources. LIRS list of marketplaces Lagos State Waste Management Authority Association of Nigerian Market Women - Lagos chapter Qualitative survey of markets to estimate size, goods sold. Baseline survey: To identify vendors who will participate and to get cut current level of compliance and relationship with marketplace associations and other information.
  7. 7. Figure: Markets in Lagos
  8. 8. Figure: Lagos Island Markets
  9. 9. Sampling protocol? Markets ranked based on size Number of vendors to be surveyed distributed to get vendors in markets in each LCDA more vendors from larger markets Survey team given a GPS location. surveys every ten vendors for single-story markets and every twenty vendors for multi-story markets. only vendors in fixed stalls surveyed vegetable sellers and other mobile vendors excluded Result: 3248 vendors in 198 markets.
  10. 10. Education?
  11. 11. Age? Figure: Age
  12. 12. Gender distribution? Figure: Sample is about 52% male and 48% female
  13. 13. Ethnic distribution?
  14. 14. Market Organizations? Marketplace Associations Individual market leaders Some elected Some selected Different levels of trust operating under umbrella body Association of Nigerian Market Women - Lagos chapter Iya Oloja of Lagos
  15. 15. Figure: Does MPA represent all vendors interests?
  16. 16. Figure: Who do you go to when you have a problem with a customer or vendor?
  17. 17. Is there any unavoidable tax that vendors must pay?
  18. 18. Who collects the unavoidable tax?
  19. 19. Have you heard of LIRS?
  20. 20. Conclusion Current levels of tax compliance relatively low Baseline survey shows diversity in the nature and characteristics of markets and market vendors. Marketplace associations are important Full research project will highlight best strategies to increase tax compliance.
  21. 21. Thank you.

×