Taxes are a key to economic development in Africa

The increase in tax revenues reflects efforts throughout the continent to better their domestic resources.
The increase in tax revenues reflects efforts throughout the continent to better their domestic resources. | File photo

According to the Organization for Economic Co-operation and Development (OECD), tax revenues are increasing throughout Africa – a key issue for economic development on the continent.

Tax revenues are rising as a proportion of national incomes. OECD’s recent report covers eight countries that have experience tax-to-GDO ratio increases since 2000 – Cameroon, Ivory Coast, Mauritius, Morocco, Rwanda, South Africa and Tunisia.

OECD believes the increase in tax revenues reflects efforts throughout the continent to better their domestic resources, as well as modernize their tax systems and administrations.

The biggest driver of tax increases has been more taxes on income and profits, specifically in the corporate income tax revenue stream. Value added tax revenues also increased.

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Organisation for Economic Cooperation and Development Paris, Île-de-France

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