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Goods, Services Taxes Big Revenue Raisers in Africa, OECD Finds

Nov. 19, 2019, 7:26 PM

Taxes on goods and services continued to make up the largest portion of tax revenue for about half of Africa through 2017, according to the OECD.

Such consumption taxes comprised, on average, 53.7% of tax revenue in 2017 across 26 countries highlighted in the Organization for Economic Cooperation and Development’s Nov. 19 report, Revenue Statistics in Africa. That figure is only slightly lower than the 55.4% in 2008, according to the report.

  • A tax on goods and services, like value-added taxes, was the main revenue-raiser for 21 of the 26 countries, including Madagascar, Mauritius, Morocco, Nigeria, Rwanda, Seychelles, Togo, and Tunisia.
  • Value-added taxes had a wide range of impact, from 36.6% of tax revenue in Tunisia to 78.5% in Togo.
  • Taxes on profits and income generated a greater share of tax revenue in the other five countries—Botswana, Equatorial Guinea, Eswatini, Nigeria, and South Africa.

To contact the reporter on this story: Sony Kassam in Washington at skassam1@bloombergtax.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Kathy Larsen at klarsen@bloombergtax.com

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