Tax Revenue Mobilisation in Sub-Saharan Africa: the Role of Tax Administration Reforms

by | Jul 3, 2025 | AMTJ, AMTJ 2025 I1

Tax Revenue Mobilisation in Sub-Saharan Africa: the Role of Tax Administration Reforms

Authors: Franky Brice Afia Kogueda; Etgard Manga Engama; Martin Eloundou Dzana

ISSN: 2709-8575
Affiliations: Groupe de Recherche en Économie et Gestion [GREG], Université de Douala / École Supérieure des Sciences Economiques et Commerciales [ESSEC] de Douala, Douala-Cameroun; Université de Douala / École Supérieure des Sciences Economiques et Commerciales [ESSEC] de Douala, Douala-Cameroun; Université de Douala / École Supérieure des Sciences Economiques et Commerciales [ESSEC] de Douala, Douala-Cameroun, Centre de Recherche, d’Innovation et de Développement Agricoles (CARID), Douala-Cameroun
Source: African Multidisciplinary Tax Journal, Volume 5, Issue 1 (2025), p. 51–76
https://doi.org/10.47348/AMTJ/V5/i1a3

Abstract

This study aims to demonstrate the impact of tax administration reforms on the mobilisation of direct and indirect taxes from non-natural resources. Out of 40 SSA countries. The assessed tax administration reforms are the establishment of a semi-autonomous revenue administration [SARA], a Large Business Collection Unit [LTU] and an Informal Sector Business Unit or strategy [ISU]. To this end, we use a seemingly unrelated regression [SURE] panel method on data from various sources. The results show that SARAs and LTUs positively impact the mobilisation of direct taxes. However, SARAs do not have an independent impact on indirect taxes and must be used alongside ISUs. ISUs have a positive impact on the mobilisation of indirect taxes. Reorganising tax administration in relation to taxpayers has a positive impact on tax revenue.

A Panel Data Analysis of Tax Revenue Productivity after Semi-Autonomous Revenue Authority Reform

by | Jul 3, 2025 | AMTJ, AMTJ 2025 I1

A Panel Data Analysis of Tax Revenue Productivity after Semi-Autonomous Revenue Authority Reform

Author: Isaac Yamikani Chilima

ISSN: 2709-8575
Affiliations: PhD in Economics, Yokohama National University, 2019. Associate Professor of Economics and Business, Lead Faculty and Chair of Economics, School of Business and Leadership, Colorado Christian University, USA
Source: African Multidisciplinary Tax Journal, Volume 5, Issue 1 (2025), p. 77–106
https://doi.org/10.47348/AMTJ/V5/i1a4

Abstract

Since the 1980s, over 30 developing countries have adopted semi-autonomous revenue authorities (SARAs) to improve tax administration. This study provides new panel-based evidence on their effectiveness, using data from 30 countries between 1980 and 2016. Applying dynamic ordinary least squares (DOLS) and fixed effects (LSFE) models, we compare tax revenue performance before and after SARA implementation. Across six regional and temporal samples, post-reform tax buoyancy consistently exceeded pre-reform levels, with significant gains ranging from 0.134 to 0.373 percentage points. In the broadest sample, buoyancy rose from 0.979 to 1.125 – a 14.9% increase in responsiveness to GDP. The strongest improvements occurred in sub-Saharan Africa, where SARAs typically enjoy greater autonomy. These findings highlight the importance of institutional design. SARAs that are insulated from political interference and granted managerial flexibility tend to perform better. The results have clear policy relevance for governments seeking to strengthen revenue performance through tax administration reform.

Economic Analysis of the Fairness of the Land Tax System in Benin

by | Jul 3, 2025 | AMTJ, AMTJ 2025 I1

Economic Analysis of the Fairness of the Land Tax System in Benin

Author: Jonas Fassinou

ISSN: 2709-8575
Affiliations: Chaire ‘Organisation Mondiale du Commerce – Commerce International et Développement Inclusif ’ (OMC-CIDI), Université d’Abomey-Calavi (UAC), Bénin. Cabinet d’Etudes, de Recherche, de Management et de la Qualité (CERMAQ Sarl), Bénin
Source: African Multidisciplinary Tax Journal, Volume 5, Issue 1 (2025), p. 107–130
https://doi.org/10.47348/AMTJ/V5/i1a5

Abstract

This study provides an economic assessment of the fairness of property taxes, establishing a link between tax compliance and the performance of property tax collection in Benin. We first examine the distributional tools used to analyse the fairness of tax systems, namely the concentration curves and the Kakwani (K) and Reynolds-Smolensky (RS) synthetic indices. On the one hand, the results showed that in the municipalities covered by the study, namely Cotonou, Abomey-Calavi and Parakou, the tax concentration curves were higher than those of gross rental values. On the other hand, the calculated values of the indices that measure the extent of progressivity are too low, or even negative. These values range from -0.54 to 0.23 for the Kakwani (K) index, and from -0.17 to 0.0006 for the Reynolds-Smolensky (RS) index. Therefore, the property tax system in Benin is not progressive. Therefore, small landowners pay higher taxes than wealthy landowners. To improve the mobilisation of tax resources in Benin, the country’s authorities must adopt new land property valuation approaches to ensure the land taxation system is progressive.

Economic Assessment of the Impact of the Plastics Excise Tax on Plastic Waste Management in Ghana

by | Jul 3, 2025 | AMTJ, AMTJ 2025 I1

Economic Assessment of the Impact of the Plastics Excise Tax on Plastic Waste Management in Ghana

Author: Alex Moyem Kombat; Anthony Kwasi Sarpong; Julie Essiam; Charles Addae; Kwabena Apau Anto

ISSN: 2709-8575
Affiliations: Corresponding author, Assistant Commissioner for Tax Research and Policy, Ghana Revenue Authority
Source: African Multidisciplinary Tax Journal, Volume 5, Issue 1 (2025), p. 131–150
https://doi.org/10.47348/AMTJ/V5/i1a6

Abstract

Ghana is one of a few African countries that have implemented a plastics excise tax for plastic litter control and prevention, and for revenue purposes. However, the impact of the Ghanaian plastics excise tax on plastic litter has not been assessed. The aim of this study, therefore, is to assess the impact of the plastics excise tax on plastics litter in Ghana using the goal attainment criterion. A qualitative research methodology was adopted: semi-structured interviews were conducted with relevant stakeholders using the purposive sampling technique. Excel was employed along with descriptive statistics. The study showed that the tax has, to some extent, helped to encourage recycling to create a market for plastic waste, which has reduced the plastic litter, but not to zero. The study also showed that the tax has helped to increase public awareness of the tax, but has failed to reduce the production and consumption of plastics as there is an increased demand for and consumption of plastics in Ghana. However, the tax has been successful in promoting international plastic waste technology transfers in Ghana: the number of recycling entities increased from two in 2008 to 30 in 2022, in a drastic reduction in plastic litter. Against this backdrop, the authors make the following recommendations to improve the plastics excise tax policy: (1) Introduction of direct and variable tax rates based on plastic types and weight at the household level to improve the incentive effect; (2) Government should enact legislation to make it mandatory for plastic manufacturers to recycle their plastic trash; (3) Government should provide subsidies for the production of plastic substitutes, such as paper bags, cloth carrying bags, jute bags, leather bags and shopping cane baskets, to make them attractive to consumers and reduce the demand for plastic bags; and (4) Tax rates should be adjusted to account for inflation.

Impact of Value-Added Tax (VAT) Expenditure on VAT Effort and VAT Compliance Gap in Nigeria

by | Jul 3, 2025 | AMTJ, AMTJ 2025 I1

Impact of Value-Added Tax (VAT) Expenditure on VAT Effort and VAT Compliance Gap in Nigeria

Author: Alhasan Usman; Bilkisu Inuwa Jibril; Sha’awa Mohammed

ISSN: 2709-8575
Affiliations:Corresponding author, (PhD), Director Tax Operations Department; Department of Research and Statistics, Federal Inland Revenue Service Nigeria; (PhD) Department of Research and Statistics, Federal Inland Revenue Service Nigeria
Source: African Multidisciplinary Tax Journal, Volume 5, Issue 1 (2025), p. 151–177
https://doi.org/10.47348/AMTJ/V4/i1a7

Abstract

This study investigates the influence of value-added tax (VAT) expenditure on VAT effort (VEF) and the VAT compliance gap (VCG) in Nigeria. It uses quarterly time series data spanning 2011 to 2022. The analysis applies the autoregressive distributed lag (ARDL) model alongside the vector error correction model (VECM) to evaluate the relationships between the variables. Findings from the empirical analysis indicate that VAT expenditure significantly reduces VEF while increasing the VAT compliance gap, in both the short term and the long term. Additionally, per capita consumption (PCC) was found to exert a significant negative effect on VEF across both timeframes. The research concludes that VAT expenditure adversely affects VEF and compliance behaviour over time in Nigeria. Considering these negative implications for tax revenue and compliance, it is recommended that the Nigerian government and the Federal Inland Revenue Service should reassess the existing VAT expenditure framework. This reassessment should involve a comprehensive cost–benefit analysis to ensure that tax concessions are limited to cases where the anticipated benefits surpass the costs. Furthermore, efforts should be made to eliminate superfluous tax expenditures to enhance revenue mobilisation and improve compliance.