AfDB says Africa can boost revenue without raising taxes
Africa can generate over $469bn in extra yearly revenue without increasing tax rates, according to the African Development Bank. Prof Kevin Urama, the bank’s Chief Economist, highlighted the importance of better tax administration and improved public services to achieve this. He emphasized that digitalisation and reforms could drive tax compliance and efficiency. The AfDB is also helping countries like Nigeria strengthen their domestic revenue systems.
TLDR
- Prof Kevin Urama stated that Africa can unlock more than $469bn in annual revenue without raising tax rates.
- Improving tax administration through digitalisation and reforms is key to increasing compliance.
- Many citizens are hesitant to pay taxes due to poor public services and often have to provide essentials themselves.
- The AfDB is supporting African countries with capacity building for revenue authorities and has created a Public Service Delivery Index.
- Better service delivery, transparency, and prudent resource management can improve voluntary tax compliance.
