Impact of the AfCFTA Agreement on Customs Revenue: case of Togo

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

Impact of the AfCFTA Agreement on Customs Revenue: case of Togo

Author: Bayoma Wili Samara

ISSN: 2709-8575
Affiliations: Macroéconomiste-financier, Chef Section budget, Direction des finances, Office Togolais des Recettes, TOGO
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 237–253
https://doi.org/10.47348/AMTJ/V3/i1a12

Abstract

The problem of loss of budgetary revenues with the implementation of the African Continental Free Trade Area (AfCFTA) agreement remains a concern, especially for the least developed countries. The losses resulting from the removal of tariff barriers deserve to be assessed in order to allow public authorities to establish mitigating measures. Drawing from this perspective, this paper aims to quantitatively assess the impact that the AfCFTA agreement has on Togo’s customs revenue. Using the differential method of current and future tariff regimes, the results of the study estimate the total loss in Togolese customs revenue during the first three years of the implementation of the Agreement at 30.9 billion CFA. This loss represents up to 0.25 per cent of the GDP and 22.67 per cent of the customs revenue collected, which could further widen the country’s budget deficit, and consequently compromise the financing of its development needs. Faced with such a situation, the Togolese state should carry out major internal tax reforms and public policy, consisting among others of broadening its national tax base, promoting the facilitation of intracontinental trade, and supporting the private sector through financial mechanisms in order to contribute to their competitiveness in light of the competition from other foreign companies.

Tax Awareness Among Micro-Business Owners in Informal Settings

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

Tax Awareness Among Micro-Business Owners in Informal Settings

Author: Ayodele Ibrahim Shittu

ISSN: 2709-8575
Affiliations: Department of Economics, University of Lagos, Nigeria
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 254–272
https://doi.org/10.47348/AMTJ/V3/i1a13

Abstract

This paper broadly seeks to examine the determinants of tax awareness among micro-entrepreneurs in informal settings in the Bariga Local Council Development Area (LCDA) of Lagos State, Nigeria. Specifically, this paper examines the effects of business size, business records and tax education on tax awareness among microentrepreneurs in informal settings there. Tax awareness in this study is treated as a dichotomous variable to test the statistical significance of each of the predictors. The study uses a multiple logistic regression analysis. The findings show that gender, education, business records and tax education are significant predictors of tax awareness among the micro-entrepreneurs in informal settings. The study makes a significant contribution to an understanding of taxation in informal sector, especially in the African context where the size of informal settings significantly impacts the sustainable development of the economy at large.

An Analysis of Gender Equality and Tax Policies in Zimbabwe

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

An Analysis of Gender Equality and Tax Policies in Zimbabwe

Author: Learnmore Nyamu Zanga

ISSN: 2709-8575
Affiliations: Committee on Fiscal Studies (CFS)
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 273–302
https://doi.org/10.47348/AMTJ/V3/i1a14

Abstract

This paper analyses the relationship between gender equality and tax policies in Zimbabwe. It focuses on direct and indirect taxes, and explicit and implicit gender biases in the current tax system. The study under review used desktop research and a gender-disaggregated tax-incidence analysis to find that Zimbabwe’s tax laws do not have any explicit bias against women. However, indirect taxes like value-added tax, informal taxes and trade taxes, which make up 60 per cent of all tax revenue, have implicit biases against women that are hard to see. Tax data needs to be genderdisaggregated to ensure that the total revenue mix is fair to women and supports gender-transformative tax policies, both in terms of how revenue is raised and how it is spent. To increase revenue and reduce implicit bias against women, the government must close loopholes for illicit financial f lows, increase progressive taxes, evaluate incentives, and eliminate harmful incentives.

Assessment of Impact of the COMESA-EAC-SADC Tripartite Free Trade Area on Tax Revenue in Malawi

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

Assessment of Impact of the COMESA-EAC-SADC Tripartite Free Trade Area on Tax Revenue in Malawi

Author: Miriam Banda Mhango

ISSN: 2709-8575
Affiliations: Senior Tax Policy Analyst – Policy Planning and Research Division, Malawi Revenue Authority
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 303–330
https://doi.org/10.47348/AMTJ/V3/i1a15

Abstract

This study assessed the impact of Malawi’s joining the upcoming COMESA-EACSADC Tripartite Free Trade Area (TFTA) on Malawi’s tax revenue. The TFTA countries have agreed to liberalise 60 to 85 per cent of tariff lines once the Agreement comes into force, while the remaining 15 to 40 per cent will be negotiated in due course. Three simulations were conducted using the Tariff Reform Impact Simulation Tool: full liberalisation, 85 per cent liberalisation, and 60 per cent liberalisation. The findings reveal that the TFTA will have a negative impact on Malawi’s tax revenue. The findings also indicate which are Malawi’s revenue-sensitive goods under the TFTA, and how the list will change depending on how much the country liberalises its trade. The study also establishes that Malawi’s manufacturing sector will be the most affected sector under the TFTA. In conclusion, it is recommended that since Malawi is joining the TFTA, it should consider improving and reforming tariff revenue collection to protect itself from the expected revenue loss.

Impact of Tax Compliance Enforcement Initiatives in Uganda: case Study of the Value-Added Tax Fraud Campaign

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

Impact of Tax Compliance Enforcement Initiatives in Uganda: case Study of the Value-Added Tax Fraud Campaign

Author: Micah Samuel Gaalya

ISSN: 2709-8575
Affiliations: Uganda Revenue Authority
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 331–347
https://doi.org/10.47348/AMTJ/V3/i1a16

Abstract

By utilising the economic deterrence theory of tax compliance the study establishes the impact of a VAT fraud campaign on taxpayer behaviour in Uganda. The study employed grouped matching difference-in-differences in regressions. We used monthly time-series data for 563 taxpayers for the period 2017–2018. The data was acquired from the Uganda Revenue Administration (URA) database. The results show that there was a small improvement in compliance behaviour over a timeframe of one year after the implementation of the VAT fraud campaign. Return filing increased by 35 per cent, timeous or on-time filing increased by 5 per cent and non-filing decreased by 3 percent. The policy implications are that the URA should put more effort into improving return filing since this should lead to important behavioural change. In addition, the URA should design specific risk treatment strategies targeting late and non-filing. Lastly, future compliance risk mitigation strategies should be focused on specific sectors where lessons learnt can easily be replicated in respect of different taxpayers within a given sector.