Effective Taxation in Africa: Confronting Systemic Vulnerability through Inclusive Global Tax Governance
Domestic Revenue Mobilization, International Tax Regimes, African Tax Norms, Global Tax Systems
Implicit within the African fiscal architecture are embedded vulnerabilities to exogenous factors which challenge their domestic revenue mobilization (DRM) strategies. These DRM challenges are attributable to asymmetrical power relationships that exist within the international tax regime (ITR). The rules governing international taxation have largely been devised by developed countries resonating their own economic purposes, resulting in a regressive relationship that overlooks African perspectives in the creation of tax norms. Consequently, policymaking, and scholarship have focused extensively on curbing these power asymmetries that have resulted in vulnerable African tax systems. Continental and domestic approaches are now aligned towards fostering reform of the international tax regime to be more inclusive and participatory. This chapter adds voice to advocacy for the development of the ITR based on a triangular foundation of true inclusivity and interactionalism. The paper advocates for effective participation in the tax rules making process; reform-oriented agenda setting; and a deliberate materialization of outcomes that aim to strengthen tax revenue mobilization in developing countries (participation–agenda–outcomes). As a continent that consistently derives the negative revenue-to-GDP ratios, countries on the continent would, no doubt, derive more from a global tax system that pivots towards inclusivity and development.
Okanga Okanga & Lyla Latif, "Effective Taxation in Africa: Confronting Systemic Vulnerability through Inclusive Global Tax Governance" (2021) 2 Afr J Intl Economic L 100.