Using digital payments to catalyze tax collection in The Gambia

The informal sector accounts for around 80% of Gambia’s economy, making direct taxation of micro, small, and medium-sized businesses difficult. This project proposes a randomized control trial (RCT) to assess the impact of mobile money accounts, combined with training, on tax compliance among small businesses, such as carpentry, welding, and tailoring. Additionally, the study will examine whether extending mobile money payment options can reduce tax evasion among these businesses. Based on the outcomes of the study, this project seeks to inform how digital finance can catalyze tax collection in low-resource settings, contributing to improved government revenue collection and better development outcomes.