Poor tax compliance in Africa worries Mutati

Movement for Multi-party Democracy (MMD) faction leader Felix Mutati has urged African governments to devise methods that will make payment of tax more persuasive.

According to statement from Mutati’s press office, the former Finance Minister said this at the Crowne Plaza Hotel during a three-day international conference organised by the Jesuit Hakimani Centre in Nairobi, where he was guest speaker.

Mutati expressed worry with the low tax compliance levels in most African countries saying the trend had capacity to affect service delivery.

Mutati asked African governments to ensure that citizens appreciated the benefits of tax payment and illustrated that during his reign as Finance Minister, one of his primary driving forces was to ensure that enough resources were mobilised in order that people’s development aspirations were met.

“He bemoaned the levels of borrowing which most countries had been associated with and that finding cooperating partners so as to meet budget deficit had been a challenge and fatigue while very little was coming out hence need to raise compliance levels. Mutati urged government to curb administration costs involved with following up taxes introduced tax agents who were responsible to the revenue authority. He suggested more capacity building among tax collectors,” read the statement.

The conference which is being under the theme “Improving Domestic Resource Mobilisation and stemming illicit financial flows aim to educate, engage and mobilize local and national stakeholder and bind them together in joint advocacy at a date that will be announced by the Jesuit Hakimani Centre.

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