Gendered tax burdens in contexts of high informality

This study examines the intersection of taxation, gender and informality, highlighting both progress and ongoing challenges in addressing gender disparities in tax systems. It does so by reviewing and synthesising existing studies and empirical cases. In low-income countries, women are disproportionately represented in low-income informal work, often burdened with unpaid care and domestic responsibilities, and lacking access to social protection, essential services, financial resources and other benefits accorded to those working formally. Their over-representation at the bottom of income pyramids within informal activities means they bear disproportionately heavier burdens than men for taxes that use a flat rate, such as presumptive taxes. This burden is further exacerbated by flat rate licenses and permits they are required to pay. In such contexts, gender-sensitive fiscal policies and tax reforms that include representation in tax policymaking are essential to address these disparities — alongside simplified licensing systems and expanded access to social safety nets. Revenue collection from the informal sector can become an impoverishing exercise if not accompanied by a whole-of-government approach that ensures compensatory social policies are in place — particularly for women in the lowest income quintiles of informal sectors.