Barnett, K. and Grown, C., 2004, Gender Impacts of Government Revenue Collection: The Case of Taxation, London: Commonwealth Secretariat

Are tax systems gender neutral? Assessing taxation and revenue from a gender perspective is no easy task. Political and technical constraints help to explain why most work to date has focused on expenditure. This paper provides information to assist in the analysis of potential gender bias in tax systems and help the design of gender-sensitive revenue measures. A hypothetical gender-tax typology is proposed as a possible approach to the gender analysis of taxation. A list of questions for policymakers highlights gender issues, such as 'how can tax benefits/allowances flow to the mother rather than father?', and 'how should tax systems recognise the value of unpaid care?'. Tools and methodologies are now being adapted and developed to assist gender revenue analysis, and these are explored in the final section of the report. Specific recommendations include the need for support for the following types of initiatives: the collection of relevant sex-disaggregated data; legal reviews of tax law in developing countries; review of the gender impact of a greater share of tax revenue shifting to direct taxes; and the introduction of pilot gender revenue initiatives in a small number of developing countries where there is sufficient data.

Revenues (taxes, user charges, and donor funds) are often only examined by business organisations that traditionally do not have a poverty or gender-equity focus. Tax incidence studies can be used to look at different aspects of tax systems that are relevant to pro-poor and gender-sensitive budget initiatives. Studies have shown that direct income taxes fall more heavily on men because of their higher incomes. Indirect taxes, such as those on consumer goods, fall more heavily on the poor and women. For women this is because of their greater role in managing the household budget. A major constraint to gender-differentiated tax incidence analysis is lack of data, particularly gender-disaggregated data. One alternative to tax-based financing for public services is user fees, yet evidence has shown that these can have significant equity losses including a reduction in the utilisation of services. More research is needed to determine the gender implications of user fees. More research is also needed into international experiences of using tax reforms to stimulate economic activity and promote efficiency and an equitable allocation of resources. Tax reforms rarely make gender equality commitment an objective. More country case studies need to be analysed to give a better picture of the direction of reforms and how they impact on women.