Post by Chr. Michelsen Institute (CMI)

📝 New CMI Brief - When taxes become visible Taxes on digital financial services are increasingly used to generate public revenue. But new evidence from Tanzania shows that the visibility of these taxes can significantly affect user behaviour.   Based on an experiment involving 618 small business owners in Dar es Salaam, this study finds that reminders about mobile money taxes reduced willingness to use mobile money services - even among participants who already knew that the tax existed.   The findings highlight important trade-offs for policymakers seeking to balance revenue generation, financial inclusion, and trust in public institutions.   📎 Read the full brief: https://lnkd.in/eTk4yqXP Odd-Helge Fjeldstad | Ingrid Hoem Sjursen | REPOA | NHH Norwegian School of Economics | ifo Institute – Leibniz Institute for Economic Research