In contemporary society, taxation is and remains the primary source of funds needed by governments to finance national development in an effort to alleviate poverty and deliver public services. Tax revenues not just offer an antidote to aid dependence but have the potential to provide the fiscal reliance and sustainability needed to promote sustainable development. While strengthening tax systems is key to raising revenues, simultaneously designing tax systems that promote inclusiveness, encourage good governance, and promote social justice requires governments to balance difficult trade-offs.
For the first time in twenty years, extreme poverty rose in 2020 across the globe as a result of the disruption of the COVID 19 pandemic - with approximately 100 million additional people estimated to now be living in poverty. Recent estimates suggest that the Sub-Saharan Africa region will account for nearly one-third of this increase. At the same time, this rise in global poverty was accompanied by a projected loss in public revenues. Governments have taken several measures to cushion the effects of poverty by further increasing public expenditures and the region is expected to exit the recession, with its economy set to expand by 3.3% in 2022 and 2023. Economic recovery remains timid and fragile, though, as the slow pace of vaccination continues to expose the region to emerging strains of coronavirus.
Governments across Sub-Saharan African have traditionally spent comparatively little on social service provision. With over 64% of the world’s poor living in the African continent as of 2020, the provision of basic services like water, sanitation, health, and education too often remain unavailable. To raise the required resources from domestic sources, many governments may intend to further widen the tax base. The informal sector in Sub-Saharan Africa covers 90% of the labor force and is estimated to account for almost 40% of GDP. At the same time, we do not understand the full extent to which the informal sector faces levies and taxes through both formal and informal taxation.
In partnership with IDinsight, we have organized an engaging webinar to discuss the question of how developing country governments can raise the required resources through equitable and just tax systems.
Taking place on 9th December 2021 from 3pm to 5pm (Nairobi time) and moderated by: Prof. Amos Njuguna, Chair, NIERA Dean, School of Graduate Studies, Research & Extension, USIU-Africa, the dialogue will be led by key industry experts namely:
- Alvin Musioma, Executive Director- Tax Justice Network.
- Torben Fischer, Associate Director-IDinsight.
- Catherine Mutava-Partner- Lexlink Consulting.
- Vanessa van den Boogaard, Research Fellow, Internationa Centre for Tax and Development.
To participate, please register your interest through the registration link above.
We are looking forward to your participation.