Tax reforms for Africa to achieve the UN sustainable development goals in the post-COVID-19 economic fallout

Abstract

The COVID-19 global pandemic has posed an economic crisis that might derail the ability of many countries to achieve the UN sustainable development goals by the 2030 deadline. Although countries have come up with economic measures to shelter their economies from the crisis, these can only be short-term responses to the economic challenges they face. In the medium and long term, the tax system is the only sustainable bedrock for the reconstruction of countries’ economies. The crisis has prompted some countries to contemplate new tax measures to fund revenue recovery while others are contemplating how traditional tax measures should be reconsidered. However, measures that may be feasible in developed countries, may not be feasible for debt stricken and capacity constrained African countries that have narrow tax bases with almost no room left for fiscal stimulus. This article recommends some feasible and actionable tax measures that African countries can consider to increase their revenues by broadening their tax bases and curtailing those activities that narrow their tax bases.