Tax Officer Presence Builds Trust in Rich Areas, Erodes It in Poor Ones: Tanzania Study

A randomised experiment in mainland Tanzania found that the presence of a tax officer during a survey interview raised trust and tax payments in wealthier regions but lowered both in poorer ones. The study, covering 1,210 small businesses and matched against administrative records for about 40,000 firms, suggests outreach programmes need to be tailored to local trust levels.