Ndagijimana urges tax collectors on domestic resources mobilization

Ndagijimana was speaking Monday in Kigali at the launch of African Tax Administration Forum’s (ATAF) High Level Tax Policy Dialogue.

The dialogue takes place under the theme ‘Reinforcing Africa’s Position to Benefit from The Global Tax Agenda’

Ndagijimana said that the theme of the meeting itself underscores the importance of close collaboration needed between tax policy and tax administration functions for effective revenue mobilization.

He said that under the Agenda 2063, Africa committed to strengthen domestic resource mobilization, build continental capital markets and financial institutions, and reverse the illicit flows of capital from the continent.

“Whatever meeting of development actors that one attends, domestic resource mobilization has taken center stage of development discussions. Domestic revenue mobilization improved substantially in recent decades but tax-to-GDP ratios are still low in most of our countries and the continent is still heavily dependent on external financing, including foreign aid,” he said.

Domestic resource mobilization, Ndagijimana said it helps building effective, transparent and harmonized tax and revenue collection systems.

He said it also reduces aid dependency, enhance domestic savings and eliminate all forms of illicit flows.

“The global Sustainable Development Goals can only be realistically achieved through a coordinated response to resolve taxation issues with a view to increase domestic resource mobilization,” he urged.

Ndagijimana said that Africa’s tax to GDP ratio is below 18%, loses over US$50 billion in illicit financial flows.

“We will not develop at the rate we wish, if we are not able to mobilize domestic resources in a more effective manner. The levels of resources lost through illicit financial flows are higher than the official aid received by Africa,” he added

He emphasized that Africa’s design of tax systems must consider global dimension of tax policies.

However, Ndagijimana said that experience shows that Africa needs to put in more effort to position itself and participate actively in the global tax agenda by being more proactive than reactive.

ATAF executive secretary, Logan Wort said that tax collection needs adequate laws.

“Tax collection has to go hand in hand with Tax laws and Policies that are adequate,” Logan told the media.