Introduction to the “m-tax” mobile payment platform in Senegal: A formative evaluation of the reform

In many developing countries, mobilizing tax revenue from the informal sector remains a significant challenge. This proposal seeks to conduct a formative evaluation of Senegal’s “m-tax” reform, a mobile tax payment platform designed to enhance tax compliance, particularly within the informal economy. Given the high penetration of mobile money in West Africa, the study will examine the potential of “m-tax” to broaden Senegal’s tax base, with a focus on informal small and medium-sized enterprises (SMEs). The project will employ a randomized evaluation to assess the platform’s effectiveness in increasing tax declarations and payments, incorporating tax education in local languages to reduce barriers. The study aligns with Senegal’s broader economic goals under its Emerging Plan (PSE), aiming to raise the tax burden to 20% by 2025. It will also evaluate how digital solutions can contribute to sustainable revenue mobilization in the informal sector, a key driver of the country’s economy. Broadly, the findings will provide critical evidence for the government’s tax policy and digital transformation strategies.