By Mark Plant
Governments in Africa have a prime objective—to reduce poverty. To improve living standards and create jobs, they need to provide their citizens with better health care, better education, more infrastructure. They need to build hospitals, schools, and to pay doctors, nurses, teachers.
All this costs money. How to pay for this—in a way that is both fair and efficient—is a question that all governments face.
There are limits to how much a government can receive as grants from donors or borrow from donors or the private sector. So raising tax revenues is a necessary element for governments to spend on providing more of these essential services and, in turn, reduce poverty. (more…)
Filed under: Africa, IMF, International Monetary Fund, Low-income countries | Tagged: AFRITACS, domestic tax revenues, education, equity, health spending, infrastructure, natural resources, poverty reduction, regional technical assistance center, Sub-Saharan Africa, tax administration, tax exemptions, tax policy, taxpayer protection, technical assistance, topical trust funds, trade liberalization, Value-Added Tax, VAT | 6 Comments »