Statistiques des recettes publiques en Afrique 2019

Chapter 1. Tax revenue trends, 2008-2017

Achieving the United Nations’ Sustainable Development Goals (SDGs) and implementing the Addis Ababa Action Agenda call for mobilising additional finance, in particular domestic resources, to fund public goods and services. Taxation provides a predictable and sustainable source of government revenue, in contrast with the volatility of other important sources of public revenues, such as official development assistance and mineral royalties. This report presents an internationally comparable set of indicators on tax and non-tax revenues which can be used to track progress on domestic resource mobilisation (as envisaged in the SDGs, the Addis Ababa Action Agenda as well as related initiatives such as the Addis Tax Initiative) and to inform tax policy and reform.

This chapter discusses trends in the tax-to-GDP ratio, tax structure and share of tax revenue by level of government in 26 African countries: Botswana, Burkina Faso, Cabo Verde, Cameroon, the Republic of the Congo, Côte d’Ivoire, the Democratic Republic of the Congo, Equatorial Guinea, Egypt, Eswatini, Ghana, Kenya, Madagascar, Mali, Mauritania, Mauritius, Morocco, Niger, Nigeria, Rwanda, Senegal, the Seychelles, South Africa, Togo, Tunisia and Uganda. It also compares the averages of the 26 African countries with that of 24 Latin American and Caribbean (LAC) countries (OECD et al., 2019_[1] ) and that of 36 OECD countries (OECD, 2018_[2] ). The discussion supplements detailed country information on tax revenue in Chapter Chapter 5.

Tax-to-GDP ratios1

Tax-to-GDP ratios in 2017

The average tax-to-GDP ratio in the 26 African countries in this publication (referred to as the “Africa (26) average”) was 17.2% in 2017 (Figure 1.1). The tax-to-GDP ratio is measured as tax revenues (including social security contributions paid to general government) as a proportion of gross domestic product (GDP).2 In comparison, the LAC and the OECD average tax-to-GDP ratios were 22.8% and 34.2% respectively in 2017.

In 2017, tax-to-GDP ratios varied widely across the countries included in this publication, ranging from 5.7% in Nigeria to 31.5% in the Seychelles. The Seychelles, Tunisia, South Africa, and Morocco, among the countries in this publication with the highest incomes per capita, each had tax-to-GDP ratios above 25.0%. Nineteen countries recorded tax-to-GDP ratios between 11.0% and 22.0% while the Democratic Republic of the Congo, Equatorial Guinea and Nigeria had tax-to-GDP ratios below 7.0%.

Excluding social security contributions (SSCs) from tax-to-GDP ratios changes the distribution due to the large differences in their level among the countries in this publication. With SSCs excluded, the tax-to-GDP ratios for the Seychelles and South Africa remain higher than the comparable OECD average as SSCs represent less than 0.5% of GDP for these countries, whereas Tunisia – where social security contributions equate to about 10% of GDP – has the fourth highest tax-to-GDP ratio among African countries. Seven African countries have higher levels of tax than the LAC average when SSCs are excluded.

Figure 1.1. Tax-to-GDP ratios and total tax revenue (excluding social security contributions) as percentage of GDP, 2017

Note: Data include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only) and South Africa for 2002-17.

The Africa (26) average, the averages for LAC (24 countries) and the OECD (36 countries) are unweighted.

The Africa (26) average should be interpreted with caution as data on social security contributions are not available for the Republic of the Congo, the Democratic Republic of the Congo (prior to 2012), Equatorial Guinea, Togo and Uganda and are only partially available for Cameroon and Senegal. Social security contributions for Botswana are deemed to be null as they do not meet the criteria to be classified as social security contributions set out in the OECD classification of taxes in the Interpretative Guide. See the country tables in Chapter Chapter 5 for further information.

1. The tax-to-GDP ratio for South Africa includes payments made by South Africa to the Southern African Customs Union (SACU) pool.

Source: Tables 4.1 and 4.2 in Chapter Chapter 4 and (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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Changes in tax-to-GDP ratios between 2016 and 2017

The average tax-to-GDP ratio for African countries remained at 17.2% between 2016 and 2017. Tax-to-GDP ratios increased in 15 of the countries in the publication, decreased in ten and remained unchanged in one country. The Republic of the Congo had the largest decrease in tax-to-GDP ratio in 2017, of 3.4 percentage points (p.p.), which reduced its tax-to-GDP ratio to 12.5% of GDP in 2017. This was similar to its 2014 level, after two years above 16.0%. Excluding the Republic of the Congo, the average tax-to-GDP ratio for the other 25 countries increased by 0.1 p.p. over the period.

Figure 1.2. Change in tax-to-GDP ratios between 2016 and 2017 (as percentage of GDP)

Notes: The figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only) and South Africa for 2002-17. The Africa (26) average, the averages for LAC (24 countries) and the OECD (36 countries) are unweighted.

The change in the Africa (26) average should be interpreted with caution as data for social security contributions are not available or are partial in a few countries. See the country tables in Chapter Chapter 5 for further information.

Source: Authors’ calculations based on data in Table 4.1 in Chapter Chapter 4 and (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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The shares of the main tax revenue categories (as a percentage of GDP) also remained stable between 2016 and 2017 for the Africa (26) average and no clear trends were observed among countries toward or away from any particular category of tax. The three countries with the largest increases in tax-to-GDP ratios – Egypt, Tunisia and Cabo Verde – all saw increases in revenues from value added tax (VAT) while income taxes increased in two – Tunisia and Cabo Verde:

• In Egypt, the tax-to-GDP ratio increased by 1.8 p.p. between 2016 and 2017, mainly driven by an increase in VAT revenues of 0.9% of GDP. This followed an extensive VAT reform implemented in 2017, which expanded the VAT base, reduced exemptions and increased the standard VAT rate (see Box Box 1.1).

• In Tunisia, the tax-to-GDP ratio increased by 1.6 p.p., driven in large part by income taxes and VAT which both increased by 0.6 p.p. over the period:

  • Between 2016 and 2017, revenues from corporate income tax (CIT) increased by 0.8 p.p. Higher oil prices boosted the economic activity of oil companies resulting in an increase of CIT revenues equivalent to 0.2% of GDP. In addition, Tunisia implemented an exceptional one-off levy (“contribution exceptionelle”) of 7.5% on 2016 corporate profits that yielded revenues equal to 0.4% of GDP.

  • The increase of VAT revenues between 2016 and 2017 occurred after two years of reduced VAT collections. In 2017, VAT revenues recovered to their 2014 level of 6.3% of GDP following stronger domestic demand.

• In Cabo Verde, the revenue increase of 1.4% of GDP resulted largely from higher VAT revenues (0.6% of GDP) and income taxes (0.5% of GDP). These increases were due both to stronger economic activity in 2016 that led to higher corporate profits and to tax administration measures, including improved effectiveness in tax collections (following tax reforms since 2013), better detection of tax fraud and evasion and increased debt collections through special tax debt recovery systems.

Figure 1.3. Change in tax-to-GDP ratios by main tax heading between 2016 and 2017 and by country (percentage points)

Notes: The figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only) and South Africa.

The Africa (26) average, the averages for LAC (24 countries) and the OECD (36 countries) are unweighted.

The Africa (26) average should be interpreted with caution as data for social security contributions are not available or are partial in a few countries. See the country tables in Chapter Chapter 5 for further information.

Source: Authors’ calculations based on data in (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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The two largest falls in tax-to-GDP ratios between 2016 and 2017 were observed in Botswana and the Republic of the Congo. The Republic of the Congo’s tax-to-GDP ratio decreased by 3.4 p.p. in 2017 due to decreases in revenues from all the main tax categories (1.4 p.p., 1.1 p.p. and 0.8 p.p., for income taxes, VAT and taxes on other goods and services, respectively). This is attributable to the continuing economic recession (GDP shrank by 4.6% in 2017 after contracting 2.8% in 2016) (IMF, 2018_[4] ) and new hydrocarbons regulations introduced in 2016 to attract new international oil companies via more generous fiscal and customs regimes. For example, oil companies that moved from a concession contract to a production-sharing contract were no longer subject to CIT. In Botswana, the 1.7 p.p. decrease in the tax-to-GDP ratio in 2017 was caused by a decline in income tax revenues, particularly from the mineral sector following the closure of a major copper and mineral mine in October 2016 which resulted in a sharp contraction of activity in the mining sector.

Between 2016 and 2017, changes in revenues from personal income taxes (PIT) and from CIT as a percentage of GDP varied significantly across the 26 countries in this publication (Figure 1.4). The annual changes in CIT revenues were more significant in most countries while PIT changes remained more modest (at less than 0.4% of GDP). In 2017, the Republic of the Congo recorded the highest decrease in CIT revenues (1.0% of GDP) while the Seychelles recorded the highest increase in CIT revenues (1.2% of GDP).

Figure 1.4. Annual changes in revenue from taxes on income and profits, by sub-category and by country between 2016 and 2017 (percentage points)

Notes: The Africa (26) average, the averages for LAC (24 countries) and the OECD (36 countries) are unweighted. The breakdown of income tax by 1100 personal income tax and 1200 corporate income tax is not available for Botswana.

Source: Authors’ calculations based on data in (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en

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Evolution of tax-to-GDP ratios since 2008

In 2017, the tax-to-GDP ratio for the Africa (26) average was 1.5 p.p. higher than the average in 2008. Starting in 2008, the average tax-to-GDP ratio for these countries declined slightly for two years and then increased steadily between 2010 and 2015, reaching a peak of 17.2% of GDP in 2015. Since then, the Africa (26) average tax-to-GDP ratio has plateaued (Figure 1.5).

The global financial crisis resulted in a decrease of the tax-to-GDP ratio of 0.3 percentage points between 2008 and 2010. A slowdown in economic activity and lower commodity prices contributed to this decrease. Over the same period, a number of countries implemented measures to stimulate the economy. For example, Morocco reduced the CIT rate by 5 percentage points in 2008 to improve companies’ competitiveness and to enhance their resilience during the financial crisis. The LAC average also decreased between 2008 and 2010, by 0.4 percentage points. In contrast, the OECD average was more affected by the crisis between 2007 and 2009, registering a decrease in the tax-to-GDP ratio of 1.4 percentage points over that period.

Figure 1.5. Average tax-to-GDP ratios for Africa (26), LAC and OECD, 2000-17

Notes: The figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only) and South Africa for 2002-2016.

The Africa (26) average is estimated for 2008 and 2009 as the data are not available for Nigeria. No estimation was made prior to 2008 because of the unavailability of data for a few countries.

The Africa (26), the average for LAC (24 countries) and the OECD average (36 countries) are unweighted.

The Africa (26) should be interpreted with caution as data for social security contributions are not available or are partial in a few countries. See the country tables in Chapter Chapter 5 for further information.

Source: Table 4.1 in Chapter Chapter 4 for the OECD and Africa (26) averages and (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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VAT contributed most strongly to the increase of the Africa (26) average tax-to-GDP ratio between 2008 and 2017, increasing by 0.7 p.p. to reach 5.1% of GDP in 2015 and subsequently remaining at this level. The highest annual increase was registered between 2011 and 2012 (0.4% of GDP) following the introduction of VAT in 2012 in the Democratic Republic of the Congo and Eswatini.

Income taxes were the second driver of the increase in the average tax-to-GDP ratio of the Africa (26) between 2008 and 2017. Income tax revenues increased by 0.3 p.p. to average 6.2% of GDP in 2013. Since 2013, however, these revenues declined as a percentage of GDP; in 2017, revenue from income taxes amounted to 5.9% of GDP on average.

In contrast, average revenues from other taxes on goods and services have decreased as a percentage of GDP since 2008, although these have rebounded slightly from 2015. In 2017, these revenues amounted to 4.3% of GDP.

Over a longer time period, these revenues have declined in many countries, in part due to the reduction of trade tax revenues (see the special feature Trade Taxes in Africa and the African Continental Free Trade Agreement). Cabo Verde recorded the largest decrease in trade taxes revenues (4.3% of GDP since 2004) and in Egypt, Kenya, Madagascar, Mauritius, Morocco, Niger, Rwanda, Senegal, Tunisia, Uganda, these revenues dropped by between 0.9 p.p. and 1.7 p.p. from 1998 to 2004. This decline is associated with trade liberalisation that resulted in the reduction of import tariffs, the narrowing of the base of products and services subject to excises and the elimination of taxes on exports. Tariffs will be further reduced under the African Continental Free Trade Area (AfCFTA).

Box 1.1. Tax reforms in Egypt

The Egyptian Tax Authority (ETA) has faced significant challenges in its efforts to improve and modernise its fiscal system. However, it has achieved steady gains in this regard over the past few years of economic and political stability following the global financial crisis and the aftermath of the 2011 Revolution. The ETA’s objectives in recent years have been to expand the tax base, increase tax compliance, reconsider exemption lists, strengthen tax administration and procedures, and automate and digitise processes.

In November 2016, the VAT base was expanded to include most services while the list of exemptions and zero-rated items was reduced. At the same time, the standard VAT tax rate was increased from 10% to 13%. In 2017, the VAT rate was further raised to 14%, and collections increased by over 30% relative to the previous year.

The ETA has also sought to increase revenues by improving tax compliance and to this end has pursued initiatives aimed at better using information technology, improving staff skills and motivation, and improving the work environment. Tax procedures have also been simplified. For example, CIT declaration procedures were reduced from 14 pages to 7 pages and income tax and VAT declarations have been unified. These kinds of measures are credited with increasing income tax compliance by 40% (as measured by the number of tax returns filed) and increasing the number of registered taxpayers by 20%.

The ETA is also moving toward deepening the digitisation of its tax administration and by mid-2020, the ETA plans to implement re-engineered core business processes for tax administrations, with a new, fully-integrated IT system (Egypt’s MOF, 2019_[5] ). Electronic filing (“e-filing”) of PIT, CIT and VAT was implemented in the 2018 and 2019 financial years and is mandatory for all three returns (PwC, 2019_[6] ). In addition, electronic signatures have been introduced by the Investment Authority to facilitate this e-filing.

A new Customs Law is currently being discussed within Parliament which, if passed, would allow for the use of e-documents and a revised regime for penalties and fines. Under this law, a smart card would replace the paper tax cards that are used to identify taxpayers to improve control and regulation: the new card will be required of all importers, to be presented at customs controls. A National Single Window for Foreign Trade (NAFEZA) is currently being piloted at Cairo Airport and provides a secured central information platform for all customs zones as well as a fully electronic clearance process, reducing the number of steps from 28 to 3 (declaration, verification (if needed) and payment). The introduction of a system of VAT e-invoicing is being studied as a way to reduce fraud and to allow authorities to obtain more data on both the formal and informal economies.

The ongoing reforms are part of the Medium Term Revenue Strategy, established to co-ordinate initiatives between tax authorities, with a focus on increasing the tax-to-GDP ratio and improving tax administration and policy. Other elements of this strategy are being implemented via the Real Estate Tax Authority, which is surveying all properties in order to enhance tax administration and collection. Tax codes continue to be unified to enhance tax compliance administration, to lessen the complexity of tax procedures and to simplify the relationship between tax payers and tax authorities.

Since 2014, Egyptian finances have been steadily improving. Fiscal deficits, although still higher than they were before the financial crisis, have been gradually declining as government expenses have plateaued and tax collection has been increasing. Taxes as a percentage of GDP (including social security contributions) rose from 15.3% in 2014 to 17.1% in 2017, while over the same period, the IMF reports that the annual deficit fell from 13.8% of GDP to 10.9%. In addition, the IMF reports a continuous downward trend in the annual deficit from 10.9% in 2017 to 6.7% in 2020 (IMF, 2019_[7] ).

Source: Abdel-Rahman A. and A. Hamad, Ministry of Finance of Egypt, based on an analysis undertaken while on secondment at the OECD.

The average trends observed for these different tax types in the 26 African countries differ from those recorded in the LAC region. In the LAC region, revenues from SSCs, followed by revenues from VAT, were the main driver of the increase in the average tax-to-GDP ratio between 2008 and 2017. These increases led to a marked difference in the level of SSCs as a percentage of GDP between the regions, on average: SSC revenues stood at 3.9% on average in the LAC region compared to the Africa (26) average of 1.6%. From the 1980s onwards, many LAC countries have made substantial reforms to their social security systems that have contributed to the increase of revenues from SSCs.

VAT revenues in both regions have increased across the period, with a greater increase seen in Africa, on average, than in the LAC region. Between 2008 and 2017, the Africa (26) average increased by 0.7% of GDP compared to 0.4% of GDP in the LAC region.

In contrast, revenues from income taxes have been decreasing in recent years in both regions, where income tax revenues reached their highest level in the mid-2010s and have since declined. In both regions, a shift is observed from income tax revenues towards revenues from other taxes on goods and services in recent years.

Figure 1.6. Revenue from taxes on income and profits, VAT and other tax headings as a percentage of GDP, 2008-17

Notes: The figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only) and South Africa for 2002-2017.

In 2008 and 2009, the Africa (26) average represents the average of 25 countries due to the unavailability of data for Nigeria.

The Africa (26) average, the averages for LAC (24 Latin American and Caribbean countries) and the OECD (36 countries) are unweighted.

The Africa (26) average for other taxes should be interpreted with caution as data for social security contributions are not available or are partial in a few countries. See the country tables in Chapter Chapter 5 for further information.

Source: Table 4.1 in Chapter Chapter 4 for the OECD and Africa (26) averages and (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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The evolution of tax-to-GDP ratios between 2008 and 2017 was different for each country among the 26 included in this publication (Figure 1.7). Overall, tax-to-GDP ratios increased in 17 countries while they decreased in 9. The Seychelles and Togo recorded the highest increases, of more than 6.0 p.p., while the largest decline occurred in Botswana (4.8 p.p.).

Togo has made significant efforts to improve the processes of its three revenue administrations. Measures implemented by Togo between 2010 and 2012 included initiatives to increase the number of tax offices; to tackle fraud and tax evasion; to establish the monitoring of revenue systems; to increase the number of registered taxpayers; to modernise information systems; and to reinforce staff capacity. Another reform was the establishment of the OTR (Office togolais des recettes), which unified customs and tax services into a single administration in 2014.

Figure 1.7. Change in tax-to-GDP ratios between 2008 and 2017

Notes: The figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only) and South Africa for 2002-2017.

The Africa (26) average, the averages for LAC (24 Latin American and Caribbean countries) and the OECD (36 countries) are unweighted.

Change since 2010 for Nigeria due to unavailability of data for previous years.

Source: Tables 4.1 and 4.2 in Chapter Chapter 4 for the OECD and Africa (26) averages and (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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The Seychelles has also seen a significant increase in its tax-to-GDP ratio over the last decade. It has enacted significant tax reforms over this period, including the introduction of PIT (replacing the social security tax), the harmonisation of goods and services tax (GST) rates between 2009 and 2011, the introduction of VAT to replace the GST in 2013, and amendments to the CIT in 2010 (essentially broadening the base). As a result, VAT, PIT and CIT all increased strongly as a percentage of GDP (respectively by 10.4 p.p., 4.4 p.p. and 1.9 p.p.) while SSCs decreased by 3.0 p.p. over this period.

Across Africa as a whole, the principal tax types contributing to the change in tax-to-GDP ratios between 2008 and 2017 varied. Increases in revenues from VAT were the main contributor for seven countries (Figure 1.8), from PIT in six countries, and from CIT in four countries.

Figure 1.8. Change in tax-to-GDP ratios by main tax headings between 2008 and 2017 and by country (percentage of GDP)

Notes: The figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco Nigeria (state revenues only) and South Africa for 2002-2017.

The Africa (26) average, the averages for LAC (24 Latin American and Caribbean countries) and the OECD (36 countries) are unweighted.

Change since 2010 for Nigeria due to unavailability of data for previous years.

Source: Authors’ calculations based on (OECD/ATAF/AUC, 2019_[3] ) “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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Box 1.2. Changes in tax-to-GDP ratios in African regions

Many of the countries in this publication belong to regional organisations whose members adopt common tax and external tariff rules and form a customs union. Kenya, Rwanda and Uganda belong to the East Africa Community (EAC), which also includes Burundi, South Sudan and Tanzania. Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal and Togo belong to the West African Economic and Monetary Union (WAEMU, also known by its French acronym, UEMOA). This union also includes Benin and Guinea-Bissau.

The evolution of different tax types between 2008 and 2017 in these two regions has differed. Since 2008, the changes in tax-to-GDP ratios in EAC countries occurred mainly in income taxes while there was no clear trend in the main tax categories in WAEMU countries.

The increases in income taxes in the EAC countries ranged from 0.9% of GDP in Kenya to 1.8% of GDP in Rwanda. The increases in income tax were of the same magnitude in some of the WAEMU countries except in Côte d’Ivoire, where these revenues decreased by 1.0% of GDP over the period, and Niger, where they increased by 0.2% of GDP.

In WAEMU countries, increases in other taxes on goods and services were in general higher than in EAC countries. In WAEMU countries, the increases in revenues from this source were over 0.6% of GDP except in Senegal. In contrast, increases in revenues from other taxes on goods and services were below 0.5% of GDP in EAC countries except in Kenya, where these revenues decreased.

Figure 1.9. Change in tax-to-GDP ratios by main tax headings between 2008 and 2017 in EAC and WAEMU countries (percentage of GDP)

Source: Authors’ calculations based on (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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Factors influencing tax-to-GDP ratios

Tax-to-GDP ratios are influenced by a variety of domestic and international factors. Domestically, macroeconomic characteristics such as the importance of agriculture in the economy, resource endowments, openness to trade and the size of the informal economy can influence tax-to-GDP ratios. The power of tax administrations, the levels of corruption and tax morale (or willingness of people to pay taxes – see Box Box 1.3 for further discussion) are also strongly linked to the level of tax revenues (OECD, 2014_[10] ). Geographic location is relevant: landlocked countries are less able to impose taxes on goods and services entering the country than island countries. In addition, international factors, including the tax policies of other countries, can impact tax-to-GDP ratios.

Tax-to-GDP ratios tend to be higher in high-income countries: in general, OECD countries collect a higher amount of tax revenues than non-OECD countries, measured as a percentage of GDP. Several of the 26 countries included in this publication have lower income per capita and development levels and lower tax-to-GDP ratios than LAC countries (Figure 1.10). African countries show a wider range of GDP per capita compared with LAC and OECD countries.

Figure 1.10. Tax-to-GDP ratios and GDP per capita (in PPP) in African, LAC, OECD and selected Asian and Pacific countries 2017

Notes: The y-axis is on a logarithmic scale. The purchasing-power-parity (PPP) between two countries is the rate at which the currency of one country needs to be converted into that of a second country to ensure that a given amount of the first country’s currency will purchase the same volume of goods and services in the second country as it does in the first. The implied PPP conversion rate is expressed as national currency per current international dollar. An international dollar has the same purchasing power as the US dollar has in the United States. An international dollar is a hypothetical currency that is used as a means of translating and comparing costs from one country to the other using a common reference point, the US dollar (definitions derived from (IMF, 2019_[11] ) and (WHO, 2015_[12] ).

Source: (IMF, 2019_[8] ) for figures of GDP per capita. Tax-to-GDP ratios are sourced from the regional Revenue Statistics publications.

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Higher shares of agriculture in GDP are associated with lower tax-to-GDP ratios in many studies (Addison and Levin, 2012_[13] ) (Profeta and Scabrosetti, 2010_[14] ). This reflects the fact that agriculture is a challenging sector to tax in many countries:

• In developing economies, most people working in this sector receive low incomes and many are not registered for tax purposes (PEAKS, 2013_[15] ).

• There is less taxation of the agricultural sector in Africa due to a high level of informality and a low level of monetisation (AfDB/OECD/ECA, 2010_[16] ).

• The agricultural sector often benefits from numerous tax exemptions.

Box 1.3. Tax morale in Africa

Tax morale, the intrinsic motivation to pay taxes, is a key aspect of the tax system and its ability to raise revenues, as most tax systems rely on the voluntary compliance of taxpayers for the bulk of their revenues. A better understanding of what drives differences in tax morale for both individuals and business can therefore help explain variations in tax compliance and holds the potential to inform strategies to increase revenues with (relatively) little enforcement effort; for example sending messages to Rwandan taxpayers to nudge their compliance realised an extra USD 9 million in revenue in 2016 (Mascagni, 2017_[17] ).

In the case of individuals, tax morale appears to be improving in Africa. Figure 1.11 shows that between 2005 and 2015 the proportion of African taxpayers who strongly believed that tax authorities have the right to make people pay taxes increased from 22% to 30%. There is, however, significant variation between countries and although tax morale has improved in most countries, it has also deteriorated in some cases (Afrobarometer, 2001-2015[18]).

Figure 1.11. Tax morale in Africa

Note: Panel A shows responses to the question “For each of the following statements, please tell me whether you disagree or agree: The tax authorities always have the right to make people pay taxes.” In Panel B, tax morale is measured as the average of all available observations for the question “How wrong is not paying taxes” on a scale from 1 (not wrong at all) to 3 (wrong and punishable). The black bar represents a simple average of the countries included in the Afrobarometer.

Source: OECD Development Centre/Centre for Tax Policy and Administration calculations based on Afrobarometer (2015).

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Institutional and socio-economic factors are strongly linked with individuals’ tax morale in Africa. Recent OECD work (OECD, 2019_[19] ) uses public opinion surveys (World Values Survey and Afrobarometer) to better understand the drivers of tax morale. In Africa, support for democracy, faith, educational attainment and trust in government were all identified as factors influencing tax morale in Africa. The analysis tests for other possible drivers: perceived improvement in the quality of tax administration, making taxes simpler to pay and providing quality public services all appear to be drivers of tax morale in Africa. A result that contrasts to other regions and stands out for further study is that women in Africa appear to have lower tax morale than men.

The findings also highlight the potential gains from taxpayer education. The OECD has surveyed taxpayer education initiatives in 50 countries to be presented in an update to the 2015 report Building Tax Culture, Compliance and Citizenship (OECD/FIIAPP, 2015_[20] ).

There is limited data to analyse tax morale in businesses. (OECD, 2019_[19] ) uses data on tax certainty among multinational enterprises (MNEs)1 as a proxy on the basis that MNEs are less likely to engage with the tax system when they perceive it to be less certain. In developing countries, including a number in Africa, tax certainty appears to have an impact on business, resulting in modified business structures, increased costs and changes to investment decisions. With some regional variations, both international taxation and the relationship between the authorities and businesses are consistent concerns across developing countries. In Africa, clarity of legislation and tax certainty were the highest concerns.

Overall, these can be seen as issues of trust, suggesting that trust between taxpayers and authorities is likely to be a key component of tax morale for businesses. To further understand tax morale in business – in Africa and elsewhere – the OECD is undertaking a survey to assess how tax officials perceive business compliance with voluntary principles on tax, such as the BIAC Statement of Tax Best Practices for Engaging with Tax Authorities in Developing Countries.

1. The analysis is based on a unique data source, the 2016 OECD business survey that gathered views from senior staff from over 500 companies, almost all MNEs, providing views on tax certainty in 82 developing countries.

Countries that receive substantial revenues from oil exports often exhibit low tax ratios. Countries with more revenues from natural resources tend to resort less to politically-demanding forms of taxation such as income taxes (AfDB/OECD/ECA, 2010_[16] ) and have relatively narrow tax bases. The six countries (Botswana, Cameroon, the Republic of the Congo, the Democratic Republic of the Congo, Equatorial Guinea and Nigeria) that collected oil and mineral rents and royalties amounting to more than 10% of tax revenues in 2017 all had tax-to-GDP ratios below the Africa (26) average. These kinds of revenues, which are not classified as taxes, are discussed in detail in Chapter Chapter 2.

Tax structures

The composition of a country’s tax revenues by different tax types is known as its tax structure. This is an important indicator, since different taxes have different economic and social effects. The tax structure varies widely across the 26 countries in this publication, reflecting different policy choices, economic structures and conditions, tax administration capabilities and historical factors.

Evolution of tax structures, 2008-2017

Over the last decade, the average tax structure for the countries in the publication has shifted toward revenues from PIT and VAT. Increases in both tax categories as a share of GDP were also significant in driving the overall increase in the tax-to-GDP ratio on average across the period. Revenues from both sources increased by 0.7% of GDP over the last decade, reaching 2.8% and 5.1% of GDP respectively in 2017 (Figure 1.12).

The share of tax revenues from VAT has increased by 1.7 p.p. to 29.4% of total taxation in 2017, continuing the longer-term shift toward VAT from other taxes on goods and services (including sales tax, excises and taxes on specific taxes). Similarly, the share of tax revenues from PIT increased by 2.6 p.p. over this period to 15.4% of total tax revenues in 2017. Although the share of PIT revenues is still lower than the share of CIT revenues (18.6% of total tax revenues, on average), CIT revenues have been decreasing over the same period (by 1.2% of GDP).

Figure 1.12. Tax structure, Africa (26) average as percentage of total tax revenue and percentage of GDP, 2008 and 2017

Notes: The figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco Nigeria (state revenues only) and South Africa for 2002-2017.

The Africa (26) average, the averages for LAC (24 Latin American and Caribbean countries) and the OECD (36 countries) are unweighted. They should be interpreted with caution as data for social security contributions are not available or are partial in a few countries. See the country tables in Chapter Chapter 5 for further information.

The Africa (26) average for 2008 reflects the average tax structure of 25 of the 26 countries since data for Nigeria are only available as of 2010.

Source: Authors’ calculations based on data on (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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Tax structures in 2017

In 2017, VAT generated the largest share of tax revenues for the countries included in this publication (Figure 1.13). Revenues from VAT contributed 29.4% of total tax revenues on average, a share similar to the LAC average (27.9%) and approximately 10 percentage points higher than the OECD average (20.2%, 2016 figure). However, given the overall lower average tax-to-GDP ratio, VAT revenues for the Africa (26) average are lower than the LAC and OECD averages when measured as a share of GDP (5.1% of GDP in Africa, compared to 6.0% in LAC and 6.8% in the OECD (2016 figure)).

The average share of CIT revenues in total tax revenue in Africa amounted to 18.6% in 2017, above both the LAC and OECD average shares (15.5% and 9.0%, respectively). Reported as a percentage of GDP, the average shares of CIT revenues for the 26 African countries and for the OECD were similar (2.8% and 2.9% of GDP (2016 figure) respectively); both were lower than the LAC average at 3.4% of GDP in 2017 (Figure 1.13).

In contrast, the Africa (26) average share of PIT revenues (15.4% of total tax revenues) was lower than the OECD average of 23.8% (2016 figure) but higher than the LAC average (9.5%). As a percentage of GDP, the average level of PIT revenues across the OECD was more than double the Africa (26) average.

Figure 1.13. Tax structure for the Africa (26), LAC and OECD averages as a percentage of total tax revenues and as a percentage of GDP, 2017

Notes: The figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only) and South Africa for 2002-2017.

The Africa (26) average, the averages for LAC (24 Latin American and Caribbean countries) and the OECD (36 countries) are unweighted. The Africa (26) average should be interpreted with caution as data for social security contributions are not available or are partial in a few countries. See the country tables in Chapter Chapter 5 for further information.

The data for the OECD are for 2016 as data for 2017 are not available.

Source: Authors’ calculations based on data on (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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Figure 1.14 shows the decomposition of tax revenues across all countries included in this publication, differentiating between income taxes (both personal and corporate), social security contributions, and taxes on goods and services (including VAT and other goods and services taxes).

Taxes on goods and services were the principal source of tax revenues for 21 of the 26 countries included in this publication (the first two groups of countries in Figure 1.14). Among these countries, they generated between 36.6% of tax revenues in Tunisia and 78.5% of tax revenues in Togo. VAT was the main component of revenues from taxes on goods and services in these countries except in Côte d’Ivoire, Egypt, Ghana, Kenya, Mauritania and Uganda.

Among the five remaining countries (Botswana, Equatorial Guinea, Eswatini, Nigeria and South Africa), taxes on income and profits accounted for the principal share of total tax revenue. In all five countries, taxes on income and profits represented a greater share of total tax revenues than for the OECD and LAC averages, ranging from 48.8% of total tax revenue in Eswatini to 77.8% in Equatorial Guinea.

The importance of SSCs3 in total tax revenues varies greatly across the 26 countries in this publication. The share of SSCs in total tax revenue is highest in Morocco and Tunisia; in the remaining countries they range from less than 0.2% in Cabo Verde to around 15.0% in Egypt.

Figure 1.14. Tax structure by country, 2017

Notes: Figures include sub-national government tax revenues for Eswatini, Mauritius, Morocco, Nigeria (state revenues only) and South Africa for 2002-2017. The Africa (26) average, the averages for LAC (24 Latin American and Caribbean countries) and the OECD (36 countries) are unweighted.

The Africa (26) average should be interpreted with caution as data for social security contributions are not available or are partial in a few countries. See the country tables in Chapter Chapter 5 for further information.

1. The breakdown of revenue from income tax by 1100 personal income tax and 1200 corporate income tax is not available.

2. The data for the OECD are for 2016 as data for 2017 are not available.

Source: Authors’ calculations based on data on (OECD/ATAF/AUC, 2019_[3] ), “Revenue Statistics in Africa: Comparative tables”, OECD Tax Statistics (database), http://dx.doi.org/10.1787/be755711-en.

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This variation reflects a diversity of social security programmes and contribution rates. For example, SSCs in South Africa consist only of contributions to the Unemployment Insurance Fund. Other social risks, such as old age and disability, are covered by tax-financed social assistance programmes. In contrast, social security schemes in Morocco and Tunisia are modelled on the French system and cover a wide range of risks including old age, disability, sickness and maternity, work injury (Tunisia), unemployment (Morocco) and family benefits (SSA, 2015_[21] ).

VAT revenue ratio

This section discusses the VAT revenue ratio (VRR) in 2016 among 25 of the countries included in this publication. The VRR “measures the difference between the VAT revenue actually collected and what would theoretically be raised if VAT was applied at the standard rate to the entire potential tax base in a “pure” VAT regime and all revenue was collected” (OECD, 2018_[22] ). The VRR is the ratio of the actual VAT revenues to the product of final consumption (net of VAT revenues) and the standard VAT rate. The calculation is shown below.

This indicator provides an insight of VAT revenue loss related to exemptions and reduced rates, fraud, evasion and tax planning as well as weaknesses in tax administrations. However this indicator needs to be interpreted with caution and with reference to the underlying characteristics of the VAT system in each country, as a high VRR could result from cascading effects (for example when exemption occurs early in the supply chain) or a failure to refund VAT input credits. Other factors may also influence the ratio upwards, for example when the place of taxation rules for international trade diverge from the destination principle.

Figure 1.15 shows the VRR calculated using data from this publication and final consumption figures from the World Economic Outlook database (IMF, 2019_[8] ). In 2016, South Africa and Togo had the highest VRR (0.66 and 0.65 respectively) while Nigeria, the Democratic Republic of the Congo and Equatorial Guinea had the lowest (0.19, 0.17 and 0.07 respectively). In 2016, the VRR of 0.37 in Africa was below the LAC average of 0.59 and the OECD average of 0.56.

• The high VRR in South Africa may be explained by some features of its VAT system. South Africa has limited VAT exemptions and zero-rated products and services compared to many other African countries. In addition, the threshold for VAT registration is high in South Africa thus enabling the South African tax administration to focus on large companies (Cnossen, 2015_[23] )

Figure 1.15. VAT revenue ratio by country, 2016

Note: The Seychelles are excluded due to unavailability of some data.

Source: VAT rates are sourced from Consumption Tax Trends (OECD, 2018_[22] ) Trading Economics and Deloitte websites, the final expenditure consumption figures from IMF WEO (IMF, 2019_[8] ) and VAT revenues from the country tables.

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• Togo has a single VAT rate of 18% applicable to all activities and all products except those exempt. Thus Togo does not apply any reduced rates. In addition, its high VRR could be partly explained by improvements in tax administration since 2010 that allowed strong VAT revenue collection mentioned earlier in this chapter.

• By contrast, the Democratic Republic of the Congo showed a low VRR of 0.17. VAT revenues declined sharply since its introduction in 2012, from 4.4% of GDP to 1.9% of GDP in 2017. This decline and the low VRR reflect difficulties in the administration of the VAT by the authorities. The IMF has recommended measures to strengthen VAT administration such as the modernisation and simplification of VAT procedures, and more effective audits to control VAT refunds (IMF, 2015_[24] ).

Excise taxes

Excise taxes are both an important source of tax revenues in most African countries and are commonly used to influence consumer behaviour. Many countries levy taxes on tobacco and/or alcohol to reduce consumption of these products, or impose environmental taxes (such as taxes on transport fuels) to reduce pollution and other negative environmental externalities.

Twelve of the 26 countries in this publication have provided a detailed breakdown of their excise revenues: Botswana, Burkina Faso, the Democratic Republic of the Congo, Egypt, Eswatini, Mali, Mauritius, Rwanda, Senegal, the Seychelles, Tunisia and Uganda. For the purposes of this chapter, this country-specific breakdown has been used to divide excises into seven broad groups: fuel and other petroleum products, mining, tobacco, beverages (both alcohol and soft drinks), vehicles, communication, and other.

As a proportion of total tax revenue and GDP, excise revenues vary greatly across the 12 countries. In 2017, they ranged from 2.5% of total tax revenue in Botswana to 20.4% in the Seychelles (equivalent to 0.3% and 6.4% of GDP, respectively).

Ten countries tax fuel and other petroleum products; this category contributed between 21.0% and 33.0% of total revenues from excises in Mauritius, Tunisia, Botswana and Rwanda, and exceeded 45% of total excise revenue in the remaining six countries (Figure 1.16). Two other products that generated a significant share of excise revenues were tobacco and beverages. Revenues from excises on tobacco exceeded 25% of total excise revenues in Egypt, Tunisia and Mauritius and revenues from excises on beverages exceeded 30% of total excise revenues in Botswana, the Democratic Republic of the Congo, Mauritius, Rwanda and Uganda.

Environmental tax revenues

Environmentally related taxes, and price-based policy instruments more generally, are playing an increasingly significant role in many countries. By incorporating a price signal into consumer decisions, these taxes implement the polluter-pays principle and encourage businesses and households to consider the social costs of their actions.

An environmentally related tax is a tax whose base is a physical unit (or a proxy of a physical unit) of something that has a proven, specific harmful impact on the environment regardless of whether the tax is intended to change behaviours or is levied for another purpose (OECD, 2005_[25] ). In many countries in Africa, as well as in the OECD and the LAC region, the largest source of environmentally related tax revenue are excise taxes on fuels for road transport.

Figure 1.16. Composition of excise taxes in selected countries, 2017

Source: Authors’ calculations based on data on (OECD/ATAF/AUC, 2019_[3] ) from individual country tables.

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Although environmentally related tax revenues cannot be identified in the standard OECD classification of tax revenues, they can be identified through the detailed list of specific taxes provided by most countries within this overarching classification. It is on this basis that they are included in the OECD Policy Instruments for the Environment (PINE) database.

The PINE database classifies environmentally related taxes under four tax bases:4

• Energy: This covers taxation of energy products such as fossil fuels and electricity also including fuels for transportation such petrol and diesel. All CO₂-related taxes are categorised here.

• Motor vehicles and transport services: This category includes imports or sales taxes on transport equipment, recurrent taxes on ownership, registration or road use of motor vehicles, and other transport-related taxes.

• Resources: This category includes taxes on mining and quarrying, forestry, wildlife and fisheries.

• Pollution: This category includes taxes on ozone-depleting substances, water and wastewater, waste management.

A detailed examination of country-specific taxes for the 25 African countries in this report for which the breakdown is available demonstrates that, on average, revenue from environmentally related taxes amounted to 1.3% of GDP in 2017, slightly lower than the OECD unweighted average of 1.6% of GDP (2016 figure) (Cárdenas Rodríguez and Haščič, 2018_[26] ) but higher than the LAC average of 1.1% of GDP (OECD et al., 2019_[1] ). Across countries, environmentally related tax revenue varied from 0.2% of GDP in Côte d’Ivoire to 4.4% in the Seychelles (Figure 1.17). Nigeria does not levy environmentally related tax revenues. These figures need to be treated with caution as it is not possible to identify exactly the environmentally related tax revenue for each country; the level of revenues shown in Figure 1.17 therefore depends on the granularity of tax revenue data given by countries.

In 2017, tax revenues from energy products generated the highest level of total environmentally related tax revenue for the Africa average in this publication (0.9% of GDP on average). Revenues from energy products, most commonly from taxes on diesel and gasoline, amounted to about two-thirds of environmentally related tax revenue on average. Revenues from motor vehicle and transport taxes represented most of the remainder and tax revenues from other environmentally related bases were negligible, at 0.07% of environmentally related tax revenues on average. This is very similar to the breakdown of these revenues for OECD countries (Cárdenas Rodríguez and Haščič, 2018_[26] ).

Taxes on energy products also accounted for the largest share of environmentally related tax revenues in all but six countries. Revenue from taxes on motor vehicles and transport were the main source of environmentally related revenues for Botswana, Côte d’Ivoire, Kenya, Mauritius, and Morocco whereas revenues from resource taxes and from pollution taxes were the principal sources of revenue for Equatorial Guinea and Cabo Verde, respectively.

Figure 1.17. Environmentally related tax revenue by countries and main tax base, 2017

Note: The Republic of the Congo is excluded as it has not been possible to identify environmentally related tax revenue.

Source: Authors’ calculations based on data on (OECD/ATAF/AUC, 2019_[3] )

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South Africa has one of the highest levels of revenue from environmentally related taxes, amounting to 2.7% of GDP in 2017, with the fuel levy providing the largest share (1.4% of GDP). Over the past decade, South Africa has introduced the incandescent light bulb levy (2009/10); the electricity levy (2009/10); the CO₂ tax on vehicle emissions (2010/11) and the tyre levy (2016/17). Together, revenues from these taxes amounted to 0.2% of GDP in 2017. The revenue from environmentally related taxes is likely to increase in the future as South Africa has recently introduced a carbon tax with a tax rate of 120 rand (USD 8.34) per tonne of carbon dioxide equivalent (Reuters, 2019_[27] ).

Through the Paris Agreement of 2016, countries committed to decarbonise their economies by mid-century, implying a shift away from fossil fuels as a source of energy. Imposing prices on carbon via taxes and emission trading schemes will be an important part of this shift. Revenues from taxes on energy can increase in the medium term, if countries increase effective tax rates on the carbon content of fuels (Marten and Van Dender, 2019_[28] ).

Taxes by level of government

Analysis of taxation by level of government for the 26 countries participating in this publication is limited by the fact that data on sub-national tax revenues were only available in five countries: Eswatini, Mauritius5 , Morocco, Nigeria6 and South Africa. Revenues collected at sub-national level are considered to be low in the 26 African countries. (AfDB/OECD/UNDP, 2015_[29] ) states that “in Africa, on average, the weight of local government revenue is 7% of the total revenue of local, regional and national governments combined”. In 2017, sub-national government revenues were less than 1% of total tax revenues in Mauritius, 1.6% in Eswatini, 3.3% in Morocco and 5.4% in South Africa. In contrast, sub-national government tax revenues amounted to 14.3% of total tax revenues in Nigeria.

In general, sub-national governments in Africa tend to have limited tax collection responsibilities. (AfDB/OECD/UNDP, 2015_[29] ) observed that “Many local governments receive a significant share of their total revenues from central government transfers”. Local governments across Africa have limited resources and their tax administrations are not appropriately equipped to collect taxes efficiently or to account for them. This results in high collection costs and an extensive number of low-yield taxes. Moreover, the processing of data on revenue collections and the exchange of information with other public institutions is poor and there is usually little co-operation with the central government. This leads to a duplication of taxes or a levying of taxes that are contrary to national objectives (such as local taxes on export crops).

Revenues from property taxes are the most important source of reported tax revenue for sub-national governments in Eswatini, Mauritius, Morocco and South Africa. They accounted for all the reported tax revenue collected locally in Eswatini, Mauritius and for more than 80% in Morocco and South Africa. Most of the remainder derives from taxes on goods and services. In contrast, sub-national government tax revenues in Nigeria are entirely sourced from income taxes.

There are wide differences in local taxation among African countries and many of them do not levy any local taxes on buildings and landholdings, or on economic activities (AfDB/OECD/UNDP, 2015_[29] ). Apart from South Africa, property registers are lacking or incomplete, which is a major challenge for the collection of property taxes (Fjeldstad; Chambas; Brun, 2014_[30] ). In Mauritius, for instance, property tax provides a low yield partly due to outdated cadastres and valuations of property (IMF, 2014_[31] ).

Some countries have been working on improving their property taxes, which has led to improved land registries and better administrative tools. Morocco has been reforming local government tax systems and administrations since 2007 to strengthen local tax revenue (Boisard; de Freitas; Hidouci, 2014_[32] ). Côte d’Ivoire has boasted the implementation of GIS software in its land registries. South Africa has successfully decentralised urban property tax collection and has developed a modern system to collect property tax revenue including use of statistical techniques to conduct computer-assisted mass-appraisals, or CAMA (Monkam and Moore, 2015_[33] ).

Although many countries have undertaken major reforms of their central tax legislation and administrations over the last decades, less focus has been put on the local government level. Central government taxation has been prioritised because of the need to reduce national fiscal deficits.

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Notes

← 1. Two countries, Ghana and Senegal, have recently rebased their GDP. The rebasing of GDP is a regular statistical practice that entails replacing the old base year used for compiling the GDP with a more recent, base year that allows more accurate estimates of GDP. The rebasing exercise includes new methodologies and data sources, new classifications of industry and products and the integration of changes in the System of National Accounts. As a result of the rebasing, the tax-to-GDP ratios for Ghana and Senegal in this edition are lower than the levels shown in the previous edition. The difference in tax-to-GDP ratios for the year 2016 between the two publications amounted to 3.9 p.p. for Ghana and 5.0 p.p. for Senegal.

← 2. The Africa (26) average needs to be interpreted with caution due to the incompleteness or unavailability of data for social security contributions in some African countries in this publication. Data on social security contributions are not available for the Republic of the Congo, the Democratic Republic of the Congo (prior to 2012), Equatorial Guinea, Togo and Uganda; and are only partially available in Cameroon and Senegal. Social security contributions for Botswana are deemed to be null as they do not meet the criteria to be classified as social security contributions set out in the OECD classification of taxes in the Interpretative Guide. See the country tables in Chapter Chapter 5 for further information.

← 3. Data for social security contributions are unavailable for the Democratic Republic of the Congo (prior to 2012), Equatorial Guinea, Togo and Uganda and are incomplete for Cameroon and Senegal. See the country tables in Chapter Chapter 5 for further information.

← 4. The OECD PINE DB (http://oe.cd/pine) collects detailed instrument-level information which is aggregated to produce revenue totals. The database supports the monitoring, design and implementation of effective policies. The OECD PINE database hosts, since 2005, a unique set of detailed information on 3 476 policy instruments in 94 countries.

← 5. Data from Mauritius were derived from financial statements produced by Statistics Mauritius.

← 6. Sub-national tax revenues figures include state revenues but exclude local government revenues.