LAUSR

The use of mobile phones is a global phenomenon that provides developing countries with novel opportunities to enhance economic growth and facilitate improvement in the welfare of citizens. Governments have introduced mobile money taxes to improve tax revenue generation. This has been met with criticism by the public, media, and businesses on the basis that they hinder financial inclusion, constrain economic growth, and impede the attainment of some of the 2030 sustainable development goals, such as reduction in poverty, minimising inequality, building strong institutions, and providing decent work. Through a comprehensive critical review of literature, this study discusses mobile money taxes and their effects on revenue mobilisation, financial inclusion, and the attainment of the 2030 sustainable development goals. The findings reveal mixed opinions. While some scholars argued that mobile money taxes were instrumental in improving revenue generation, tax compliance, and reducing tax administration and compliance costs, some suggested otherwise, pointing out their negative impact. The unfavourable externalities include reduced financial inclusion, affordability challenges, reduction in usage of mobile money platforms, increased poverty and inequality, and ultimately the non-achievement of SDGs. The study contributes to the theoretical literature on the body of taxation and financial inclusion. It also gives insights to policymakers regarding likely implications of mobile money taxes.