Tax exposure and digital exchange at the edges of the formal economy: Experimental evidence from Tanzania

Project report 18 Mar 2026 State Effectiveness, Sustainable Growth and Tax for Growth

This study examines whether digital platforms affect small and medium enterprises’ exposure to taxation in Tanzania by testing how directory access and tax salience influence behaviour. Experimental results show no significant effects on tax invoice receipt or firms’ willingness to pay for listings, suggesting tax concerns do not deter SME participation in digital services.