ATAF’s Baine on how African govts can improve revenue collection post-COVID-19

Revenue collection in Africa remains a challenging issue, with many sub-Saharan African countries struggling to collect the required taxes to fund government programs. Reports indicate that about 20 countries in the region collect less than 13% of their GDP in taxes, highlighting the urgency of finding solutions to improve revenue collection. In response to this pressing issue, the African Tax Administration Forum (ATAF) has been working closely with the African Union and African Development Bank to host a high-level policy dialogue. The goal of this dialogue is to address the current challenges in revenue collection and discuss strategies to enhance tax collection post-COVID-19. Mary Baine, the Director for Tax Programs at ATAF, recently participated in a television interview with CNBC Africa to shed light on the ongoing dialogue and the key focus areas for improving revenue collection in Africa. Baine emphasized the importance of building strong communication channels between tax policymakers and administrators to facilitate better revenue collection. The annual high-level dialogue brings together various stakeholders, including ministries of finance, revenue administrations, academics, parliamentarians, and civil society organizations, to collaborate on drafting policies that can enhance revenue mobilization across the continent. One of the key themes of this year's dialogue is the improvement of domestic tax collection, which accounts for a significant portion of revenue in many African countries. According to ATAF's African Tax Outlook, at least 61% of tax revenue in 37 surveyed countries is derived from domestic taxes. By focusing on enhancing domestic tax collection methods, ATAF aims to drive increased revenue collection and promote sustainable development in the region. During the interview, Baine addressed some of the major challenges hindering effective tax collection in Africa, including corruption and technical limitations. Baine stressed the importance of enhancing accountability and transparency in tax collection processes to build trust between governments and citizens. ATAF's recommendations, aimed at combating corruption and improving information exchange among government agencies, are designed to promote better tax compliance and revenue administration. In response to questions about tax morality, particularly in the context of corruption allegations against state institutions, Baine highlighted ATAF's advocacy efforts to promote ethical tax practices. By engaging with the African Union and advocating for greater accountability at all levels of government, ATAF aims to address issues of tax morality and foster a culture of compliance across the continent. Looking ahead, Baine outlined the implementation process for the recommendations generated from the high-level dialogue. The proposed policy and administrative measures will be presented to the ministers of finance at the African Union, followed by discussions at the general assembly. Subsequently, individual countries will be responsible for implementing the agreed-upon recommendations at the national level, ensuring a coordinated effort to enhance revenue collection practices across Africa. In conclusion, the collaborative efforts of ATAF, the African Union, and other partners underscore a shared commitment to address the challenges of revenue collection in Africa. By fostering dialogue, promoting accountability, and advocating for policy reforms, these organizations aim to pave the way for improved revenue mobilization and sustainable development on the continent.