ATAF Launches Guide for Taxing Africa's Wealthiest

The African Tax Administration Forum (ATAF) has unveiled a guide designed to assist African countries in enhancing the taxation of high net worth individuals (HNWIs) to improve government revenue for development. Mari Bain, the ATAF Executive Secretary, emphasized the need for effective taxation of high-income earners to ensure they contribute a fair share.

The guide aims to support tax authorities across Africa in broadening the tax base and improving equity within the tax system. Bain noted that tax collection in African countries remains low, with only five percent of the adult population paying personal income tax, compared to approximately 50 percent in wealthier countries.

The guide draws on studies conducted in nine African countries, including Algeria, Eswatini, Kenya, South Africa, Tanzania, Togo, Uganda, Zambia, and Zimbabwe, identifying gaps in current policies and administrative systems. It provides practical steps for countries to define HNWIs, improve compliance, and manage wealthy taxpayers effectively.