The Tax Justice Network-Africa makes a damning observation: “…economic inequality is perpetuated by among other things, non-inclusive, inequitable and unaccountable tax systems characteristic of most countries in Africa.” TJN-A’s argument is that governments are increasingly employing consumption taxes like VAT (regressive taxes) so as to take advantage of the growing informal sector. However, these regressive taxes burden the poor rather than the rich. It would seem that the rich in Africa have it easy yet they are still not willing to contribute to the fiscus. Sub Saharan Africa continues to struggle with tax revenue mobilization and this has led to stunted government spending which results in low economic growth if any. It is time for the rich to pay their fair share.
The September 2018 AfrAsia Bank Africa Wealth Report says the total individual wealth held in Africa amounts to US$2.3 trillion. The continent has more