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Mobilizing VAT Revenues in African Countries

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  • Sijbren Cnossen

Abstract

Several African countries have to increase their tax revenues to finance human and economic development. General consumption taxes, such as VATs, are the preferred instrument for doing so, because they are less detrimental to growth than income taxes. To enable their use, VAT design has to be improved. Currently, many VATs are so riddled with exemptions and zero rates on domestic goods that they resemble extended excise tax systems, while the standard rate is mainly confined to luxury goods. VAT base-broadening would not only increase revenue, but also reduce the economic distortions and administrative complexities of most taxes.

Suggested Citation

  • Sijbren Cnossen, 2014. "Mobilizing VAT Revenues in African Countries," CESifo Working Paper Series 5102, CESifo.
    • Handle: RePEc:ces:ceswps:_5102
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    References listed on IDEAS

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    Cited by:

    1. Godin, M. & Hindriks, J., 2015. "A Review of Critical Issues on Tax Design and Tax Administration in a Global Economy and Developing Countries," LIDAM Discussion Papers CORE 2015028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. repec:nam:befdwp:7 is not listed on IDEAS

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    More about this item

    Keywords

    Africa; collection efficiency; tax effort; VAT;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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