ABSTRACT
The objective of this article is to analyse the effect of the independence of tax administrations in 40 sub-Saharan African countries on tax revenue mobilisation between 2000 and 2022. It assesses how de jure and de facto independence influence the collection of direct and indirect taxes, using a seemingly unrelated model (SURE) and a linear double regression model. The findings reveal that de jure independence has a positive effect on direct tax mobilisation. Specifically, the financial and regulatory autonomy of tax administrations positively impacts the direct tax burden. However, for indirect taxes, only organisational autonomy shows a significant effect on mobilisation. The study also highlights that de facto independence, which reflects the quality of institutional practices, has a positive impact on both direct and indirect tax mobilisation. The analysis concludes that simply granting autonomy to a revenue authority is not a guaranteed process for inefficient tax mobilisation. Instead, the findings suggest that the most effective approach is to establish a tax administration that operates with the efficiency and management structure of a private entity. The study recommends that developing countries governments prioritise creating public administrations that are responsive and well-governed, particularly for the collection of direct taxes which are crucial for economic growth but remain low in Sub-Saharan Africa.