Africa can raise $469bn annually without tax hikes, says AfDB
via Punch Nigeria8 min read
The African Development Bank AfDB states that African nations can generate over $469 billion in additional annual revenue without increasing statutory tax rates. Prof. Kevin Urama, Chief Economist and Vice President for Economic Governance and Knowledge Management at the AfDB, explained that this can be achieved by improving tax administration through digitalization and other reforms, emphasizing that stronger domestic resource mobilization is the most sustainable source of development financing for the continent. He highlighted that enhancing service delivery, strengthening public institutions, and ensuring transparency would significantly boost tax compliance. Many citizens are reluctant to pay taxes when they have to provide essential services themselves, so delivering quality public services and prudent management of resources are key to improving voluntary compliance. The AfDB supports African countries, including Nigeria, in strengthening domestic revenue mobilization through capacity building for national revenue authorities and has developed a Public Service Delivery Index to encourage governments to improve service delivery and reinforce the social contract with citizens.
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