How governments digitise the collection of taxes, fees and levies

Last checked: 20 October 2026 · Explainers

Governments digitise revenue collection in three main ways. They build and run a system themselves, as Tanzania's Ministry of Finance did with its payment gateway ⁵. They contract a vendor, as Kenya did for eCitizen ⁷. Or a private company runs the system and is paid from fees or a revenue share, as in Rwanda and South Sudan ^6,8. IMF research links digital filing and payment with shorter filing times and higher revenue, and flags risks around fraud, cyberattacks and money held outside treasury accounts ^1,2.

Main models: In-house build, vendor contract, private operator paid by fees or revenue share ^5,6^7,8
Filing time effect: E-filing and e-payment cut tax-filing time by 25 percent on average, IMF 2018 ¹
Revenue link: Up to 3 percentage points of GDP linked to firm digitalization, IMF working paper 2025 ³
Key risk named by IMF: Public money held outside the Treasury Single Account ²

Three models

The table compares how each model is built and paid for, using countries covered on this site ^5,6^7,8.

Model	Example	Who built and runs it	How it is paid for
In-house build ⁵	Tanzania GePG ⁵	Ministry of Finance and Planning ⁵	Government, with collection required by the Public Finance Act as amended in 2017 ⁵
Vendor contract ⁷	Kenya eCitizen ⁷	ICT Authority with a consortium led by Webmasters Kenya Limited ⁷	Contract payments and a per-transaction convenience fee ^7,10
Public-private partnership, fees ⁶	Rwanda IremboGov ⁶	Rwanda Online under a 25-year contract signed in July 2015 ⁶	Per-transaction service fees, as reported by KT Press ⁶
Private operator, revenue share ⁸	South Sudan e-services ⁸	Crawford Capital Ltd ^8,9	75 per cent profit share of taxes collected according to the UN, disputed by the company ^8,9

What the IMF says about benefits

The IMF Fiscal Monitor of April 2018 found that "Electronic filing and payments have on average reduced tax-filing time by 25 percent" ¹. It said digital records are harder to alter than paper and gave South Africa, Estonia and China as examples of digital tax tools ¹.

A 2025 IMF working paper by Manabu Nose, Nicola Pierri and Jiro Honda found that "Stronger firm digitalization is associated with higher tax revenues across countries". It estimated gains of up to 3 percentage points of GDP, depending on how digital the tax administration is ³.

A 2023 IMF working paper says payments that carry a unique transaction ID can be reconciled quickly against accounting codes and government accounts ².

What the IMF says about risks

Cyberattacks: "Digital systems are vulnerable to cyberattacks, which can disrupt government functions" ¹.
Capacity: countries with severe institutional constraints will find it hard to fund digital solutions ¹.
Treasury control: "Treasuries should maintain Treasury Single Account (TSA) coverage when adopting fintech payments" ².
Funds held by providers: e-money backing funds in escrow or trust accounts create exposure to bank failure ².
Reform context: "Digitalization of payments should be an integral part of broader efforts" ¹.

What the World Bank says

The World Bank's South Sudan Digital Economy Assessment, marked 2022, says the 2021 set-up of an e-tax portal is estimated to have improved revenue collection by three-fold since the switch from a manual to a digital system ⁴.

Audits and disputes

Kenya's Auditor-General reported in 2025 that close to KSh 9 billion was at risk on eCitizen and that a flat KSh 50 convenience fee was charged instead of a prorated fee, as reported by The Star ⁷. The Treasury said procurement was proper and the vendor had handed over the platform ¹⁰.

A UN commission said in September 2025 that Crawford Capital retains a 75 per cent profit share of taxes it collects under a 2019 agreement in South Sudan ⁸. The company said in June 2026 that it charges a 2% platform fee and that a 75/25 split applies only to a separate US$15 convenience charge ⁹.

Common questions

What is a revenue share contract in tax collection?

It is an arrangement in which the operator keeps a percentage of money collected. The UN described such a share in South Sudan in 2025 ⁸.

Does digitising tax collection raise revenue?

IMF research links firm digitalization with higher tax revenue, by up to 3 percentage points of GDP ³.

What are the risks of private payment platforms for governments?

The IMF names money held outside the Treasury Single Account and exposure of trust account funds to bank failure ².

Which countries built their own payment gateway?

Tanzania's Ministry of Finance and Planning implemented the Government Electronic Payment Gateway ⁵.

Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.

Sources

Kenya: iTax, eCitizen and government digital payments
How Kenya collects taxes through KRA iTax and fees through eCitizen, who operates eCitizen, the KSh 50 convenience fee and the Auditor-General's audit.
Rwanda: IremboGov, the Irembo partnership and RRA e-Tax
How Rwanda runs IremboGov through a 25-year public-private partnership, what services cost, and how RRA e-Tax handles tax declarations.
Tanzania: the Government e-Payment Gateway (GePG) and TRA systems
How Tanzania's Government e-Payment Gateway works, its legal basis, control numbers, payment channels and the Tanzania Revenue Authority's online systems.
South Sudan: the SSRA e-tax portal and Crawford Capital
South Sudan's 2021 e-tax portal, the role of Crawford Capital, the UN commission findings, US visa restrictions and the government response.