Oil and Gas Sector Tax Receipts Spur Revenue Growth in Africa

Corporate tax receipts from surging profits in Africa’s extractive sector helped the country’s tax revenue as a share of gross output grow by 0.5 percentage points in 2022.

Africa’s average tax-to-gross domestic product ratio reached 16% in 2022, compared to 15.5% before the Covid pandemic, according to a report published by the Organization for Economic Cooperation and Development on Tuesday.

The largest increases were reported in Chad and Democratic Republic of the Congo, which saw tax-to-GDP increase by 3.3 and 3.6 percentage points respectively, driven by corporate tax receipts amid higher profits from the oil and gas sector. ...