African governments hope digital taxes will fill a budget hole

Putting levies on mobile money is easier than taxing profits of multinationals


  • by KAMPALA
  • 10 13, 2022
  • in Middle East & Africa

economy is bringing Africans together. The same cannot be said for attempts to tax it. Levies on mobile and internet services have sparked street protests in Uganda, cabinet squabbles in Nigeria and a parliamentary brawl in Ghana. In August Congolese officials even confiscated the passports of telecoms executives to try to make them cough up.African governments are willing to take unpopular measures because they need to fill a hole in their coffers. In the worst months of the pandemic their tax take fell by an average of 15%, even as spending rose. They have long struggled to collect income taxes, relying instead on taxes on goods and services for about half of their revenues. Now they see untapped potential in new sectors which barely existed 20 years ago, including social media, e-commerce, mobile internet and mobile money.

  • Source African governments hope digital taxes will fill a budget hole
  • you may also like

    • by DUBAI AND JERUSALEM
    • 01 29, 2025
    Hamas talks a big game but is in chaos