African tax forum launches guide to boost taxation of the wealthy
The African Tax Administration Forum has introduced a new guide to help African nations improve the taxation of wealthy individuals. Mary Baine, the Executive Secretary of ATAF, said the guide aims to support tax authorities in ensuring high-income earners contribute fairly. The guide addresses the low rate of personal income tax collection among Africa's employed adults and offers practical steps for improvement. It also draws on research from nine African countries to identify policy gaps and suggest solutions.
What we know
- The African Tax Administration Forum released a guide to help tax authorities tax wealthy individuals more effectively.
- Mary Baine emphasized that better taxation of high-net-worth individuals can broaden the tax base and support development.
- Only about five per cent of Africa’s employed adult population pays personal income tax, compared to roughly 50 per cent in wealthier countries.
- Over 90 per cent of personal income tax revenue in many African nations comes from salaried employees, leaving much wealth untaxed.
- The guide is based on a study in Algeria, Eswatini, Kenya, South Africa, Tanzania, Togo, Uganda, Zambia, and Zimbabwe, and offers practical tools for tax authorities.
