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Peer-Reviewed Article February 28, 2023

Increasing Tax Collection in African Countries: The Role of Information Technology

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Published in: Journal of African Economies
Publisher: Oxford University Press • South Africa • 0963-8024 • 1464-3723
DOI: https://doi.org/10.1093/jae/ejac036

Abstract

Abstract Many African countries struggle to collect an adequate amount of tax revenue to support needed investments in public services. This paper examines how African countries may take advantage of recent advances in technology to improve tax administration. It provides an overview of the potential and challenges of different tax categories in Africa: consumption taxes, real estate taxes, trade taxes and income taxes. It then describes the ways in which technology solutions may be deployed to address these challenges by helping to identify the tax base, monitor compliance and facilitate compliance. Lastly, it provides insights from interviews with senior tax administrators across the continent on their practical experiences in adopting technology for taxation.

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