The Prime Minister of Mozambique, Carlos Agostinho do Rosario, has argued that the prevalence of fraud and ineffective tax collection, plus a weak capacity to levy companies in the extractive industry, are the main problems facing tax administrations in Africa. Rosario was addressing the opening in Maputo of the Seventh African Dialogue on Taxation on Monday when he said other problems contributing to the weakness of African tax administrations were tax evasion and the failure to tax the informal economy.
The Premier said however it was encouraging to note that, since the early 1990s, the average fiscal ratio in Africa has increased, meaning that many economies have made significant progress in tax collection.
“This increased taxation gave governments better conditions to fight poverty and develop their countries”, he said.
Do Rosario admitted that tax administration was often complex due to the increasing use of sophisticated technologies, which are often not accessible in African countries and said the ways of achieving the most practical solutions should be discussed.