NWADIALOR, E.O and Agbo, Elias Igwebuike (2020) INCREASING TAX-TO-GDP RATIOS OF SUB SAHARA-AFRICAN COUNTRIES: LESSONS FROM ADVANCED ECONOMIES. International Journal of Research in Management Fields, 4 (1). pp. 17-38. ISSN 2577-4274
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PUBLISHED PAPER ON TAX TO GDP RATIO.pdf Download (1MB) |
Abstract
This study has the objective of identifying the challenges militating against the growth of tax-to-GDP ratios of sub-Sahara African countries,their causes and remedies. Nigeria is used as a case study while the content analysis research approach is adopted.Reports from some apex international monetary authorities indicate that, while a typical advanced country has a tax-to-GDP ratio of around 40% , many sub-Sahara African countries maintain tax-to-GDP ratios that fall below the 15% threshold..Though the tax structures in many of those countries have improved in recent times, growth in their domestic revenue mobilization has been generally sluggish.Many of them persistently experience significant tax-gaps,overwhelming increase in external debt-to-GDP ratio and budget deficits - a clear manifestation that their tax policies require serious overhauling. The paper reveals that the low- rated countries are characterized by Gulf countries while the high rated ones are dominated by European countries and that, even as one the largest economies in Africa, Nigeria is one of the sub-Sahara African countries having the lowest tax-to- GDP ratios. It suggests that, in line with best practices, the sub-Sahara African countries should put in place clear political mandates to tackle low levels of tax payment and a simpler tax system with a restricted number of rates and exemptions.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions |
| Divisions: | Faculty of Management and Social Sciences |
| Depositing User: | mrs chioma hannah |
| Date Deposited: | 03 Mar 2020 11:19 |
| Last Modified: | 03 Mar 2020 11:19 |
| URI: | http://eprints.gouni.edu.ng/id/eprint/2550 |
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