Tax for Development

The purpose of the Tax for Development programme is to contribute to improved tax systems and increased tax revenues in developing countries.

The African continent is rich in natural resources and many countries in Africa are experiencing healthy economic growth. Nonetheless, little of this growth is benefiting the poor.

Due to tax exemptions and evasion, the tax contribution of many companies and individuals is close to negligible. This means that entire societies lose out on vast revenues which could have been used in areas such as infrastructure, education and health care.

Comparison of tax revenues

A broader tax system and more awareness around issues of taxation can foster stronger political engagement by the general public.

People who pay taxes will place demands on the authorities for equitable taxation, and for greater transparency with regard to who the tax contributors are and how the revenues are spent. An open dialogue around tax issues could therefore act as a catalyst towards more accountable politicians.

tax revenues
Norway’s tax revenues account for approximately 44 per cent of the country’s GDP (gross domestic product).The corresponding average in OECD is approximately 35 per cent. In many low-income countries in Africa, this share accounts for less than 15 per cent, according to the OECD/African Economic Outlook from 2007.