Tax policy of african states

Abstract

Importance: Africa is a treasure trove of resources and innovation. Most of the 54 countries on the continent have seen significant growth and development in recent years. As a result, taxation has become an important tool in Africa’s development. Taxes represent a very small share of GDP in many African countries, increasing pressure on governments that are struggling to finance budget expenditures. Purpose: to conduct an analysis of the current tax policies of a number of African countries, demonstrating internal and external trends and identifying the continent’s unique tax challenges. Research design: based on a comparative analysis of the tax policies of a number of African countries, a comparison of tax reforms was made in order to improve the efficiency and effectiveness of tax reforms. Using the methodology of doctrinal research, tax policies were compared depending on the economic development of the country. As Africa continues to integrate digital transactions into the economy, it is therefore necessary to adapt tax legislation to the digital transformation. Results: the tax burden of a number of African countries is compared depending on the region. The factors explaining the low share of taxes in GDP are identified. The main conclusion based on this analysis is that the tax burden in Africa has strong volatility. The directions of tax legislation reforms are presented. The key points for improving the tax systems of African countries are highlighted. The positive and negative factors of the influence of various processes on the tax policy of African countries are revealed. It is concluded that a wellthought-out policy of capital control will lead to an increase in tax revenues. The need for African states to search for their own tax system was stated.