Tax Harmonization and Regional Trade Integration in the Economic Community of West African States (Ecowas)

Abstract

This paper examined the nexus between tax harmonization and regional trade integration in the Economic Community of West African States (ECOWAS). It particularly looks at the issue of tax harmonization as it relates to regional trade integration, reviewing the main theoretical, empirical and policy issues and the state of play in the debate. Based on the review of the pertinent literature, tax harmonization promotes regional investment and trade. Such policy harmonization in tax regimes benefits member countries in a regional bloc as opposed tax competition that distorts trade, business and investment. The paper recommends that institutional reforms be implemented to harmonize and coordinate tax in order to engender greater regional trade and investment in the ECOWAS sub-region.