Informal Sector Taxation: Is There Anything Worth Research

Abstract

This paper sought to establish the usefulness of a great array of recommendations aimed at taxing the informal sector. In terms of the methods and data collection, this paper predominantly reviewed literature (desk research). From the reviewed articles, this paper recognised that there are many practical policy strategies that developing countries can implement to combat informal sector but this paper has not establish whether each strategy would result in tax revenue in the short run or not. The paper further recommends that researchers must consolidate all the recommendations made and develop a framework/ model that incorporate key policy matters aimed at creating responsible informal sector world over.