Leverage tech to strengthen efficiency of tax administrations, African tax leaders told

There is an urgent need for global collaboration and strategies to leverage emerging technologies in order to bolster tax systems, safeguard economies, and boost taxpayer services in the digital age, African tax administrators have been told. The call was made on Tuesday, December 3, at the opening of the Africa Tax Administration Forum (ATAF), in Kigali. ALSO READ: Sensitisation, technology key to increasing tax revenues The annual meeting, which began with a series of closed-door sessions on Monday, convened over 500 participants including tax administrators, experts, business leaders, and scholars, to chart strategies for advancing tax governance across the continent. ALSO READ: RRA launches single portal for all online services According to Rwanda Revenue Authority (RRA) Commissioner General Ronald Niwenshuti, the evolving global landscape presents new challenges and opportunities. He argued that it is therefore appropriate and correct that as tax administrators “we are taking a leading role to face the global taxation challenges and also to take advantage of the opportunities that come with it.” He said: “The skills set within our respective tax administrations need to be consistently enhanced if we were to remain relevant as tax administrators. We need to seriously deal with non-compliance amongst our taxpayer categories, we need to expand the tax base and lastly, we need to strengthen the efficiency of our tax administrations. As we do all these, we need to embrace technology and use it to build smart tax administrations.” Niwenshuti believes that the pressure is mounting for Africa to successfully mobilize her resources for sustainable growth and development. “We play a very critical role as tax administrators; in that we are entrusted to find ways to increase the revenue performance of our tax administrations. We need to work hard to ensure that all those who are required to pay taxes do so.” While the road ahead is “long and rocky”, compared to advanced economies, Niwenshuti said that Rwanda embraced technology in most of its tax administration services. “In the tax administration, we ensured that our tax modernization agenda was powered by technology from the onset in most of all our processes. We also started the implementation of an e-invoicing solution in 2013 to overcome inefficiencies associated with VAT manual administration.” He added; “Rwanda has also built capabilities in the areas of international taxation, and data science among others.” Despite the economic challenges, the average tax-to-GDP ratio was recorded at 15.43 percent in 2022 from 14.80 percent in 2021, and above the pre-COVID average by 0.56 percentage points. A total of 24 (69%) countries recorded an increase in their ratios when compared to 2021, with most benefitting from an increase in domestic tax collections. According to Logan Wort, the Executive Secretary of ATAF, the numbers testify that tax leaders can indeed change the narrative and build African tax solutions for African tax challenges. He pointed out that the ATAF strategic plan (2023-2027) aims to bolster tax administration, enhance regional collaboration, provide crucial data for evidence-based decision-making, and amplify Africa's voice in global tax policy. He maintained that ATAF's initiatives in 2023 led to enhancements in Africa's tax landscape, increased revenue assessment and collections, and strengthened collaboration with stakeholders globally and continentally. Former Zimbabwe Revenue Authority (ZIMRA) boss Gershem Pasi lauded ATAF’s 15-year-journey, noting that he was particularly impressed by the forum’s unique agenda from its inception. He called on African tax administrators to embrace technology, as part of the efforts to strengthen the continent’s tax systems. “Technology is central now and to the future for our revenue collection and administration. Until tax administrators can capitalize on it, technology will remain an abstract concept from our tax administrations.”

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Leverage tech to strengthen efficiency of tax administrations, African tax leaders told