Faced with a higher debt level ten-up-upAfrican countries have difficulty balancing public finances. The increase in taxation from citizens to increase income is an open solution.
A good starting point for African countries would be focused on the tax contribution of wealthy citizens. Surely the most effective taxes are those who are related to the income of rich people, Income tax, especially individuals and property taxes.
There are two main reasons for this: On the one hand, even the richest people in certain countries are more than the tax authorities, although the tax authorities are often invisible. By comparison, citizens with official employment agreements such as public school teachers or supermarket staff, consider taxes carried out by direct employers, and tax evasion is practically impossible. Most taxes The income of individuals in Africa is paid by citizens occupying this type of employment.
On the other hand, only one before 2015 71 high Uganda officials 17 of the 60 most prosperous lawyers from the country paid for individuals. In the same way, Only 16% of all owners in the capital of Sierra Leone, Sierra Leone’s capital, Frita In 2021, he was registered in the tax register.
It shows that rich Africans are lower than the effective tax rates, which are already shown a trend for the relative tax burden, which are already demonstrated for the relative tax burden Small and large companies.
This situation is discouraged. However, African tax authorities take immediate measures to repair this injustice.
Research conducted by International Taxes and Development CenterSince I contributed, indicate that we can increase tax revenues from rich citizens, emphasizing the better applicability of existing taxes, rather than applying new or increased tax rates.
An effective approach to increase tax contribution of tax citizens is based on three strategies:
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their identification
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Simplification of tax compatibility procedures and
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An effective application of existing taxes.
Although these proposals appear meaningless, it can cause rapid increase in revenues: up to $ 5.5 million Uganda or $ 900,000 Only one state of Nigeria in a year. As observed, they can allow the recipes of property taxes three times Sierra Leone.
However, these progress requires change in transaction mode of African tax administrations.
The Tax Recovery Services should change
The tax services of all African countries should be better equipped with resources. A typical tax agent on the continent may be responsible 10 times more taxpayers than the tax agent in northern countries.
Initially, their efforts should be redirected to other areas than the record of small unofficial companies. This effort is indicated to obtain less income in different countries South Africa and Sierra Leone.
Their efforts must be directed to the development of the definition of the definition of the definition of high-level people adapted to the national context. In Uganda, this includes criteria for about $ 300,000 for five years or the criteria as a perception of about $ 150,000 in a certain year.
Due to the federal structure, the criteria change from one state to another in Nigeria. For example, in Borno and Canoe states, a large annual income of 2 million Naires is required in the situation of 15 million Nair in Niger, Niger province and 25 million in the state of Lagos.
However, in two countries, criteria and Uganda commercial forests or high-level agriculture or high-level agriculture or high-level agriculture, or in the Kaduna province of Nigeria, government agreements are more measurable.
Land taxes are of special importance. Research in Ethiopia and Rwanda The property is one of the main strategies for the assembly of wealth, especially the inflation and fluctuations of exchange rates are not very attractive.
These goods later help them to increase the income of rich citizens who lease them or take advantage of them. Although there are no detailed information on capital income or rental income taxes, they also have good reasons why they are mainly exploited. Capital gain refers to an added value that an investor gathered as an investor sells assets such as homes or activities that have previously purchased in low price.
Second, it should be followed by the establishment of an office that meets the work of rich people. It is already done For large taxpayers. Most of the majority of the majority of the majority, most African countries have an office dedicated to tax affairs for large-scale companies. Indeed, there are no detailed information about taxpayers. The number of houses, for example, does not have information such as evaluation of market value, such as evaluating their market value.
There are every interest in trusting in the information that African countries have collected other useful information about taxpayers. This allows you to create a set of important or secondary and secondary criteria.
Third, sections dedicated to high-level persons need to be strong support. Initially, the management of the tax authorities, in turn, should take advantage of the government’s support frequently. This support is necessary to obtain information from other government organizations, which can already be prevented, and the efforts of determination are often important when it comes to application of the law.
However, the joint approach should be preferred as a priority. One of the strategies is to create vonontal declaration programs accompanied by tax amnesties. These programs are effective in obtaining information about the assets of wealthy citizens. In addition, they create based recipes – $ 296 million in South Africa and $ 192 million in Nigeria.
Fourth, public functions can be a source of information and income that can provide a tax discharge required by candidates. This proved to be effective in both Uganda and inside Nigeria.
The collection of these measures represents the optimal starting point for African countries wishing to improve the tax contribution of wealthy citizens.
Efforts to prepare appropriate directions Tax of wealthy To present world taxes in low-level countries or fortunes by the United Nations Billionaires by Brazil G20It is important to emphasize the role of re-distribution in the fight against inequality. However, many African countries will be able to make more efficient and progressive, if they decide the foundations of the tax system.
