Abidjan, Côte d’Ivoire- The United States announced $1.2 million to a local company, Business Management Invest (BMI)-Côte d'Ivoire, to launch a new tax collection system that is more efficient and transparent. BMI is partnering with researchers from Stanford University and Côte d’Ivoire’s Ministry of Economy and Finance to expand and rigorously test a digital tax system in 33 new municipalities.
Cash, paper-based tax collection systems are less efficient due to the time it takes to collect revenue and the potential for fraud throughout the process. With less revenue, local governments can be limited in their support for essential public services such as schools, infrastructure, waste management, and law enforcement.
Through the U.S. Agency for International Development’s (USAID) Development Innovation Program (DIV), BMI will deploy the Net-Collect system which uses electronic payment cards that can be loaded at local kiosks for businesses to pay their taxes. BMI and Stanford University will rigorously test whether the new system increases revenues and accountability while providing corresponding improvements in quality of life and essential public services. It will also analyze the cost-effectiveness of the new tax system, in order to evaluate the ability to scale the innovation to additional municipalities.
Through Development Innovation Ventures, USAID supports evidence-driven solutions like the Net-Collect system to transform millions of lives. DIV grant applications are accepted on a rolling basis. Learn more at www.usaid.gov/div.