The African Tax Administration Forum has reported significant tax revenue growth among 37 African countries that participated in its survey.
The report notes the countries that participated in the African Tax Outlook collected a total tax revenue of 555-billion-US-dollars in 2021 compared to 267-billion-dollars in 2020.
Research analyst at SARS, Winile Ngobeni says VAT remains the most effective tax collection mechanism among most of the surveyed countries.
“But for us in the developing countries or the less developed counties, we tend to rely more on VAT. And again, VAT is mainly easier to administer, and it does not have a lot of complications. When we look at CIT contributions, it has the largest share of revenue in countries like Nigeria, Niger and Mozambique, whereas personal income tax in countries like Eswatini, South Africa, Lesotho, and Botswana have revenue shares account for more than 30-percent of total revenue.”
