Does digitalisation improve the mobilisation of tax revenues in Africa?
Author: Docteur Akouété Paulin Bate (email@example.com)
Affiliations: Office Togolais des Recettes (OTR)
Source: African Multidisciplinary Tax Journal, 2021 Issue 1, p. 94-112
The objective of this paper is to examine the effect of digitalisation on tax revenue mobilisation in Africa. Using panel data from 40 selected african countries over the period 1980-2017, econometric estimates were implemented using the generalised method of moments. Our results indicated that digitisation has both a positive and significant effect on tax revenue mobilisation in Africa over the study period. They also revealed that economic activity, level of education, financial and industrial development are the channels through which digitalisation affects tax revenue mobilisation in Africa. These results urged policy makers to further promote the digitalisation of African economies for better tax revenue mobilisation. Finally, this study encourages African states to formulate policies with a focus on the factors that should lead to economic growth, human capital formation, financial and industrial development.