Why paying taxes matter in Africa

The recently concluded African Tax Administration Forum brought together tax administrators from across Africa to discuss the importance of taxation in driving development on the continent. Ayodele Zubair, the Executive Chairman of the Lagos State Inland Revenue Service, emphasized the need to communicate the significance of paying taxes to the public. In an interview with CNBC Africa's Christycole Popoola, Zubair shared his key takeaways from the event and highlighted the crucial role of taxation in Africa's growth. The conference featured discussions on various tax categories, including personal income taxes, corporate taxes, and value-added tax (VAT), all of which play a vital role in revenue mobilization. Zubair stressed the importance of transparency, technology, and anti-corruption measures in improving tax administration and enhancing tax efficiency. He also addressed the challenges of policy implementation and the need for African countries to collaborate and share information to combat tax evasion and leakage. The forum underscored the interconnectedness within the African tax system and the importance of cooperation among tax administrations. Overall, Zubair's biggest takeaway from the conference was the focus on corporate taxes and strategies to harness revenue from the informal sector. Lagos State, he noted, is leading the way in developing innovative approaches to tax collection and expanding the tax base. With a renewed emphasis on effective taxation, African countries are poised to drive sustainable development and reduce reliance on foreign aid.