Progressive Taxation in DRC

This project aims to scale up a progressive property tax system in two cities of the D.R. Congo, a low-income country with limited fiscal capacity. Despite progressivity being central to modern taxation, there is little empirical evidence on its effects in low-income settings where tax systems are often regressive. Building on a prior RCT in Kananga, we used drone imagery, AI, and expert assessments to generate city-wide property value estimates. We then randomized neighborhoods to progressive, proportional, or flat fee tax schedules—keeping enforcement and administration constant—to evaluate impacts on compliance, revenue, and tax morale. Preliminary results show that progressive taxation significantly increased both compliance and revenue, especially among lower-value properties. Encouraged by these findings, the provincial government plans city-wide expansion in Kananga, and Kinshasa officials have expressed interest in replicating the model. We are exploring IGI support and co-funding opportunities for scaling.