KRA Commissioner General Humphrey Wattanga on Wednesday urged African countries to modernise tax administrations despite facing challenges such as informality, governance deficits, and illicit financial flows.
The KRA boss said Africa’s tax future will be shaped by demographic trends, technological advancements, global economic dynamics, and evolving tax policy debates.
He was speaking at the ongoing International Bureau of Fiscal Documentation (IBFD) Africa Tax Symposium 2024 at the Safari Park Hotel in Nairobi
“Key considerations include harnessing technology, strengthening governance, promoting regional cooperation, and advocating for fair global tax policies. Embracing technologies like data analytics, AI, and blockchain can improve tax administration operations, compliance, and service delivery. Digitizing tax systems can streamline processes and enhance taxpayer services,” said the Commissioner General.
He emphasized that enhancing regional collaboration and harmonizing tax policies are crucial for Africa’s tax future, noting that Africa’s voice is becoming more significant in international tax policy debates. “African countries must emphasize their interests and priorities on a global scale, advocating for fair and equitable tax systems, combating tax evasion, and promoting global tax cooperation,” said Mr. Wattanga.
Mr. Wattanga also urged African tax administrations to implement effective VAT reforms to address revenue losses and create a fair competitive ISO 9001:2015 CERTIFIED PUBLIC environment for domestic businesses. He noted that VAT has proven to be significant in the continent’s revenue generation, but the expansion of digital trade presents significant challenges for VAT systems globally and in Africa.
“The strong growth in online sales of services and digital products, particularly by non-resident suppliers, complicates VAT collection. The prominence of informal economies in Africa further complicates VAT collection, requiring Africa-centric solutions for effective VAT reform,” said the Commissioner General.
Additionally, Mr. Wattanga called on African tax administrations to protect taxpayer rights, uphold integrity, fairness, and accountability while serving them, and provide access to effective dispute resolution mechanisms. He stressed that developing a sustainable Domestic Revenue Mobilization (DRM) system necessitates a comprehensive approach that combines tax administration modernization with taxpayer rights protection and access to effective dispute resolution methods.
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