revenue statistics in africa: first edition
TRANSCRIPT
Revenue Statistics in Africa: First edition
REVENUE STATISTICS IN AFRICAOFFICIAL LAUNCH OF THE 1ST EDITIONSébastien Markley and Emmanuelle Modica
A partnership
Cameroon Cote d’Ivoire Mauritius Morocco
Rwanda Senegal South Africa Tunisia
Eight participating countries
A partnership between the African Union Commission, ATAF and OECD
Technical support from AfDB, WCO and CREDAF
Revenue Statistics in Africa: A global project
…for global and African agendas
Sustainable Development Goals’ targets
the Strategy for the Harmonisation of Statistics in Africa.
the African Union’s Agenda 2063
A tool for tax policy analysis Guaranteed comparability between countries,
with Latin America, OECD Based on a well-established OECD classification
A new, free dataset on revenue
Both tax and non-tax revenue
Tax-GDP ratios, tax structure and share of tax revenues by levels of government.
Evolution of key indicators since 1990
A new set of key indicators
Total tax revenues as % of GDP since 2000
A detailed and visual analysis
Description of the key tax and tax administrations reforms
Annual and bilingual
A new publication
Revenue Statistics in Africa:Definitions
• Tax revenues are
compulsory unrequited payments to the general government
• Non-tax revenues refer to all revenues paid to general government that are not defined as taxes
Revenue Statistics in Africa: Definition of tax revenue
“Tax revenues are compulsory, unrequited payments to the general government”
Taxes on income, profits and gains Social security contributions Taxes on payroll and workforce Taxes on property Taxes on goods and services Other tax revenues
Revenue Statistics in Africa : Results
I. Tax revenue trends 2000-2014
II. Tax structure
III. Non–tax revenue
IV. Future steps and conclusions
Total taxes as a % of GDP, 2014
0%
5%
10%
15%
20%
25%
30%
35%
40%
34.4%
21.7%
31.3%28.5% 27.8%
20.1% 20.0%17.8%
16.1% 16.1%
There is less disparity in total taxes on goods and services…
OECD (201
3)
LAC av
erage
Tunis
ia
Moroc
co
Sout
h Afri
ca
Sene
gal
Maurit
ius
Côte d'
Ivoire
Camero
on
Rwanda
0%
5%
10%
15%
20%
25%
30%
35%
40%
11.0% 10.6% 11.3% 11.9% 11.4% 13.1% 12.9%10.9% 9.6% 9.0%
34.1%
21.7%
31.3%28.5% 27.8%
20.1% 20.0%17.8% 16.1% 16.1%
Taxes on goods and services, 2014
… than there is for taxes on income
OECD (201
3)
LAC av
erage
Tunis
ia
Moroc
co
Sout
h Afri
ca
Sene
gal
Maurit
ius
Côte d'
Ivoire
Camer
oon
Rwanda
0%
5%
10%
15%
20%
25%
30%
35%
40%
11.5%
6.1%9.9% 8.3%
14.3%
5.1% 4.8% 4.2% 4.9% 6.0%
34.1%
21.7%
31.3%28.5% 27.8%
20.1% 20.0%17.8% 16.1% 16.1%
Taxes on income, profits and capital gains, 2014
Personal income tax is not an important source of revenue in most African countries
OECD (...
Tunis
ia
Moroc
co
Sout
h A...
Sene
gal
Mauri.
..
Came..
.
Rwanda
0%
5%
10%
15%
20%
25%
30%
35%
40%
8.8%5.1% 3.7%
8.9%
3.1% 1.8% 1.1%3.6%
34.1%31.3%
28.5% 27.8%
20.1% 20.0%16.1% 16.1%
Taxes on personal income, 2014
Corporate IncomeTax levels vary by country
0%
5%
10%
15%
20%
25%
30%
35%
40%
2.9%4.8% 4.5% 4.8%
1.7% 2.7% 2.9% 2.4%
34.1%31.3%
28.5% 27.8%
20.1% 20.0%16.1% 16.1%
Taxes on corporate income, 2014
Social security was a major component of taxes in Tunisia and Morocco, but far less in other African countries
OECD (201
3)
LAC av
erage
Tunis
ia
Moroc
co
Sout
h Afri
ca
Sene
gal
Maurit
ius
Côte d'
Ivoire
Camero
on
Rwanda
0%
5%
10%
15%
20%
25%
30%
35%
40%
9.1%
3.7%
8.6%5.9%
0.4% 1.0% 1.0% 2.0% 0.9% 1.0%
34.1%
21.7%
31.3%28.5% 27.8%
20.1% 20.0%17.8% 16.1% 16.1%
Social security contributions, 2014
Countries with higher GDP per capita tend to have higher tax to GDP ratios
3.0
1.7
3.1
18.6
2.3
7.6 11.3 13.0
Africa OECD LAC
Tax to GDP ratio-------------->
GD
P pe
r ca
pita
in P
PP d
olla
rs---
------
------
->
There are many possible factors influencing tax to GDP ratios
Size of agricultural sector
Country is “resource-rich”
Openness to trade Size of informal economy Power of tax
administrations Level of corruption Tax morale Geographic location Historic factors
Rwanda
Côte d'
Ivoire
Camer
oon
Moroc
co
Seneg
al
Tunisi
a
LAC ave..
.
Maurit
ius
South
Africa
OECD ave..
.0%
5%
10%
15%
20%
25%
30%
35%
40%
Agriculture as % of GDP vs tax to GDP ratios, 2014
Tax to GDP ratios in African countries in the report have been rising since 2000
Total tax revenues as % of GDP
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140%
5%
10%
15%
20%
25%
30%
35%
40%
Cameroon, Côte d’Ivoire, Mauritius, Rwanda, Senegal
Morocco, South Africa, Tunisia
OECD Average
LAC Average
… but this trend was disrupted by the global financial crisis of 2007/08: countries were affected differently
Change in tax-to-GDP ratios from 2008 levels, in percentage points, 2007-2014
OECD Average Morocco Côte d'Ivoire South Africa Mauritius-4
-3
-2
-1
0
1
2
LAC Average Tunisia Rwanda Cameroon Senegal-2
-1
0
1
2
3
Every country saw a rise in tax to GDP ratio
Change in tax to GDP ratios between 2000 and 2014
(Percentage points of GDP)
0.20.8
2.43.3 3.3
4.7 4.95.5 5.9
6.7
Tax to GDP ratios increase between 2000 and 2014 was driven by income taxes
Tax revenue growth between 2000 and 2014(Percentage points of GDP)
OECD*
Mauritius
Côte d'Ivoire
Cameroon
Senegal
LAC
Morocco
South Afri
ca
Rwanda
Tunisia
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
-0.10.8
2.43.3 3.3
4.6 4.95.5 5.9
6.7
Taxes on income and profits (1000) Total
*2013 data
… and also driven by taxes on general consumption (i.e. VAT)
Tax revenue growth between 2000 and 2014(Percentage points of GDP)
OECD*
Mauritius
Côte d'Ivoire
Cameroon
Senegal
LAC
Morocco
South Afri
ca
Rwanda
Tunisia
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
-0.10.8
2.43.3 3.3
4.6 4.95.5 5.9
6.7
Taxes on income and profits (1000) Taxes on general consumption (5110) Total
*2013 data
…whereas taxes on specific consumption (excises and import duties) showed important decreases or small increases
Tax revenue growth between 2000 and 2014(Percentage points of GDP)
OECD*
Mauritius
Côte d'Ivoire
Cameroon
Senegal
LAC
Morocco
South Afri
ca
Rwanda
Tunisia
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
-0.10.8
2.43.3 3.3
4.6 4.95.5 5.9
6.7
Taxes on specific consumption (5120) Taxes on income and profits (1000)
Taxes on general consumption (5110) Total
*2013 data
Tax to GDP ratios increase between 2000 and 2014 was driven by income taxes and taxes on general consumption (i.e. VAT)
Tax revenue growth between 2000 and 2014(Percentage points of GDP)
OECD*
Mauritius
Côte d'Ivoire
Cameroon
Senegal
LAC
Morocco
South Afri
ca
Rwanda
Tunisia
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
-0.10.8
2.43.3 3.3
4.6 4.95.5 5.9
6.7
Taxes on specific consumption (5120) Taxes on property (4000)Taxes on income and profits (1000) Social security contributions (2000)Taxes on general consumption (5110) Total
*2013 data
Revenue Statistics in Africa: Results
I. Tax revenue trends 2000-2014
II. Tax structure
III. Non–tax revenue
IV. Future steps and conclusions
Tax structures vary between African countries, but the dominant form of taxation is consumption tax (goods and services)
OECD (2013)Tunisia
SenegalMorocco
Côte d'Ivoire
Breakdown of tax revenue in 2014 by category of taxes
1000 Income and profits3000 Payroll taxes4000 Property taxes5000 Goods and services taxes6000 Other taxes2000 Social security
South Africa is the only country in the publication to collect mostly income taxes
Income and prof -its; 51%
Social security; 1%
Payroll taxes; 1%
Property taxes; 5%
Goods and services
taxes; 41%
South Africa
Five of the eight countries in the report reported most of their income from taxes on goods and services
SenegalRwanda
MauritiusCôte d'IvoireCameroon
Income and profitsSocial securityPayroll taxesProperty taxesGoods & services taxesOther taxes
Tunisia and Morocco have tax structures more resembling the average OECD
OECD (2013)Tunisia Morocco
Income and profitsSocial securityPayroll taxesProperty taxesGoods & services taxesOther taxes
Corporate income tax is an important source of revenue in most African countries
0%2%4%6%8%
10%12%14%16%18%20%
8.5%
16.6%15.3%
17.2%15.8%
8.6%
15.0%13.3%
18.1%
Taxes on corporate income as % total tax, 2014
Since the 2000s, taxes on income and profits have increased as a percent of total taxation, except notably in South Africa…
Taxes on income and profits by country as a percent of total taxation
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0%
10%
20%
30%
40%
50%
60%
70%
South Africa
Cameroon, Cote d’Ivoire, Mauritius, Morocco, Rwanda, Senegal Tunisia
LAC Average
OECD Average
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0%
10%
20%
30%
40%
50%
60%
70%
80%
…while taxes on goods and services have generally decreased.
Tax on goods and services by country as a percent of total taxation
OECD Average
LAC Average
Cameroon, Cote d’Ivoire, Mauritius, Morocco, Rwanda, Senegal Tunisia, South Africa
Levels of government
1. Total revenues
2. Central government revenues
3. Regional (provincial) government revenues
4. Local government revenues
5. Social security funds
Tax revenues from subnational levels remain low and property taxes form the main source of revenue
Mauritius Morocco South Africa0.5%
2.3%
3.9%
1.1%
3.1%
4.8%Subnational taxes as a percentage of total taxes
Subnational property taxation as a percent of all taxes is the area in purple
Revenue Statistics in Africa: Results
I. Tax revenue trends 2000-2014
II. Tax structure
III.Non–tax revenue
IV. Future steps and conclusions
Non-tax revenue
“Non-tax revenues refer to all revenues paid to general government that are not defined as taxes”
Grants (i.e. foreign aid) Property income
Rents (e.g. resource royalties) Interest and dividends (e.g. investment income)
Sales of goods and services (incl administrative fees)
Fines and penalties Other non-tax revenues
NB: This does not include funds raised from privatisation
Grants
Grants are voluntary payments from foreign governments and international organisations. They are essentially foreign aid. • Ex: Heavily Indebted Poor Countries (HIPC)
initiative
Property income
Property income: revenue government gets through ownership of property.
• Rents: revenue from land ownership. Payments government obtains in exchange for access to its lands or for extracting resources.
• Mineral royalties (oil, gold)
• Rents from farming/logging on public land (cocao, timber royalties)
Property income
Property income: revenue government gets through ownership of property.
• Interest and Dividends: for example revenue from government investment in private businesses (e.g. PPPs, stock portfolios, sovereign wealth funds, etc.)
Sales of goods and services
Goods or services sold by government are considered non-tax revenues since sales are payments in proportion to value of good or service received. • Non-market : admission fees to museums, hospital admission
fees, etc
• Market: Government cafeterias, sale of sand, publications
• Leasing of buildings and equipment: Wedding venues, vehicle rentals
• Administrative fees
Administrative fees
• Administrative fees occupy a grey area between sales of goods and services and taxes.
• Classified on a case-by-case basis.
• Administrative fees are considered taxes when:
• payment greatly exceeds cost of providing service
• person paying fees is not person receiving benefit
• benefits of service are not in proportion to fee payments
Administrative fees
Sales of goods and services
Taxes
• court fees• driving licence fees• harbour fees• passport fees• radio and television
licence fees
• Film distribution permits
• hunting and fishing licenses
• gambling licenses• permission to sell
alcohol or tobacco• permission to own dogs• motor vehicle
registration fees• gun permits• severance taxes
The countries with higher GDP per capita tend to have lower ratios of non-tax revenue to GDP ratios
Rwanda
Sene
gal
Camero
on
Côte d'
Ivoire
Moroc
co
Tunis
ia
Sout
h Afri
ca
Maurit
ius
16%
20%
16%18%
29%31%
28%
20%
10%
6%4%
2%3%
2%1%
2%
Revenue as a percent of GDP,2014Tax revenueNon-tax revenue
Different countries rely on different kinds of non-tax revenue
Rwanda
Seneg
al
Camer
oon
Côte d'
Ivoire
Moroc
co
Tunisi
a
South
Afri
ca
Maurit
ius0%
10%20%30%40%50%60%70%80%90%
100%
Total non-tax revenues as a percent of total non-tax revenue, 2014
Grants RentsOther non-tax revenue
Mainly fines,
penalties and
forfeits
Mainly interest
and dividends
Mainly sales of goods and
services, admin
fees
Mainly income
from quasi-
corporations,
sales of goods and
services
These can take the form of grants (or foreign aid)…
Rwanda
Sene
gal
Camer
oon
Côte d'
Ivoire
Moroc
co
Tunis
ia
Sout
h Afri
ca
Maurit
ius0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
7.8%
3.3%
0.2%
1.8%
0.0%0.5%
0.1% 0.1%
9.5%
5.7%
4.2%
2.2%
3.5%
2.2%
0.6%
2.4%
Grants by country as % GDP, 2014
…or rents (essentially mineral royalties)…
Rwanda
Sene
gal
Camer
oon
Côte d'
Ivoire
Moroc
co
Tunis
ia
Sout
h Afri
ca
Maurit
ius0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0.0% 0.3%
3.6%
0.1% 0.5% 0.4%0.1% 0.3%
9.5%
5.7%
4.2%
2.2%
3.5%
2.2%
0.6%
2.4%
Rents as % of GDP by country, 2014
…or other non-tax revenue.(investment income, sales of goods and services, fines and forfeits, etc.)
Rwanda
Sene
gal
Camer
oon
Côte d'
Ivoire
Moroc
co
Tunis
ia
Sout
h Afri
ca
Maurit
ius0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10% 9.5%
5.7%
4.2%
2.2%
3.5%
2.2%
0.6%
2.4%1.7% 2.1%
0.5% 0.3%
3.0%
1.3%
0.4%
2.1%
Other non-tax revenue as % of GDP by country, 2014
Mainly fines,
penalties and
forfeits
Mainly sales of goods and
services, admin
fees
Mainly income
from quasi-
corporations,
sales of goods and
services
Not categori
zed
Mainly interest and dividends, fines and penalties
Rwanda’s non-tax revenue (mostly grants) is highly variable.
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Grants and total non-tax revenues as % GDP, Rwanda
Total non-tax revenue Grants
% o
f G
DP
Cameroon’s non-tax revenue is mostly royalties and is also highly variable
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Rents (royalties) and total non-tax revenues as % of GDP, Cameroon
Total non-tax revenues Rents
% o
f G
DP
Revenue Statistics in Africa: Results
I. Tax revenue trends 2000-2014
II. Tax structure
III.Non–tax revenue
IV. Next steps and conclusions
• Second edition in 2017.
• Include more countries in Africa.
• Streamline data collection gathering and processing
• Coverage of Local government, Social security funds
• Further technical discussions and training with existing and new participating countries.
• Workshop – lessons learned from first edition, bring new participants up to speed.
Next steps
• Access to core requirement to inform tax policy: centralised & exhaustive data for Africa and other continents.
• Benchmark against countries within the continent and outside for any type of taxes.
• Understand in details the categories of taxes to tap in to raise more revenues.
• Enter policy dialogue with countries and partners and access to tax advice on a comparable basis.
What would I get from this initiative?
• Capacity building by seconding tax experts at the OECD
• Acquisition of new techniques being developed at the international level
• Improvement of national data
• Transparency leading to improvement of trust from citizens
What would I get from this initiative?
OECD Centre for Tax Policy and Administration, the OECD Development Centre
• Michelle Harding [email protected]• Maurice Nettley [email protected]• Emmanuelle Modica [email protected]
OECD Development Centre
• Henri-Bernard Solignac-Lecomte ([email protected])• Sebastien Markley Sebastien. [email protected]
Contacts