Revenue Administration Reforms in anglophone Africa Since the Early 1990's
IMF Working Papers, July 1, 2011
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Bibliographic details
- Authors: David Kloeden
- Published: July 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455296736.001
Summary and Context
- Purpose: Assess revenue administration reforms in Anglophone Africa since the early 1990s, with emphasis on mobilizing domestic resources to complement debt relief, donor aid, and to achieve the MDG and poverty reduction objectives.
- Timeframe highlighted: reforms from the early 1990s through the period covered by the Working Paper.
- Publication metadata preserved:
- Pages: 47
- Series: Working Paper No. 2011/162
- Issue: 162
- Volume: 2011
- DOI: https://doi.org/10.5089/9781455296736.001
- ISBN: 9781455296736
- ISSN: 1018-5941
Major Findings
- Reform adoption:
- From the early 1990s, 16 of 19 Anglophone Africa countries established some form of revenue authority (RA) to secure greater governance, financing, and workforce autonomy.
- Outcomes and overall assessment:
- Progress over two decades is characterized as positive but mixed.
- Changes in governance and human resources practices are evident.
- The central question remains: has revenue administration improved overall? Capacity limitations and integrity issues persist.
- Tax-to-GDP:
- Most lower income African countries continue to have low tax-to-GDP ratios and need to enhance these by mobilizing domestic resources.
Institutional and Operational Changes
- Revenue authorities:
- Created to provide greater governance, financing, and workforce autonomy.
- Organizational structure and functions:
- Introduction of VAT heralded self-assessment but, in most instances, VAT administration was not integrated with income tax administration; instead, VAT administration was assigned to a separate department.
- Special units for large taxpayers are now common following initial challenges.
- Programs for other taxpayer segments are still emerging.
- Administrative features mentioned (keywords preserved):
- administration feature, audit program, central government, chief executive, Customs administration, Customs administration core functions, Customs administration program, integrated tax administration, IT system, large taxpayer office, office network, taxpayer population, taxpayer register, taxpayer segmentation.
Challenges and Limitations
- Capacity:
- Persistent capacity limitations constrain overall improvement in revenue administration.
- Integrity:
- Integrity issues continue to affect performance and outcomes.
- Fragmentation:
- Lack of integration between VAT and income tax administration in most instances has organizational implications.
- Emerging programs:
- While large taxpayer units are common, programs targeting other taxpayer segments are still developing.
Policy-Relevant Observations
- Mobilizing domestic resources:
- Strengthening revenue administration is necessary to complement external assistance and support MDG and poverty reduction objectives.
- Institutional design:
- Establishment of RAs intended to improve governance, financing, and workforce autonomy, but results remain mixed due to capacity and integrity constraints.
- Tax administration strategies:
- Adoption of VAT and self-assessment requires better integration with income tax administration and broader tax administration strategies, including taxpayer segmentation and targeted programs beyond large taxpayers.
Source: IMF Working Paper "Revenue Administration Reforms in anglophone Africa Since the Early 1990's" by David Kloeden, Working Paper No. 2011/162 (Pages: 47).