Determinants of Municipal Taxes Payment by Informal Micro and Small Business in Côte d’Ivoire

Author: Nohoua Traore

ISSN: 2709-8575
Affiliations: Assistant Professor, Université Alassane Ouattara de Bouaké, Côte d’Ivoire; Membre du Laboratoire ’Analyse et de Modélisation de Politiques Economiques (LAMPE), Bouaké, Côte d’Ivoire Chercheur Associé à la Cellule d’Analyse de Politiques Economiques du CIRES (CAPEC), Abidjan, Côte d’Ivoire
Source: African Multidisciplinary Tax Journal, 2022 Issue 1, p. 83-104


This article analyses the determinants of municipal tax payments of informal micro- and small businesses in Côte d’Ivoire. The data used relates to 276 informal production units surveyed in the framework of the CAPEC/IDRC project. Using descriptive statistics and the estimation of a Probit model, the study highlights the variables that both negatively and positively inf luence tax payments. It emerged that the perception of the high level of taxes, the fact that the manager of the informal production unit is an Ivorian, the narrowness of the market, and the problems regarding premises negatively affected tax payments. Conversely, the business environment, the electronic payment of invoices, the simplification of procedures, the number of employees and the difficulties in accessing financing enhance the propensity of managers to pay taxes.