Rabat - A report published on Friday by the Organization for Economic Cooperation and Development (OECD) said Morocco had the second highest rate of tax revenues as a percentage of the country’s total Gross Domestic Product (GDP) in 2014 out of the eight African countries studied.
Rabat – A report published on Friday by the Organization for Economic Cooperation and Development (OECD) said Morocco had the second highest rate of tax revenues as a percentage of the country’s total Gross Domestic Product (GDP) in 2014 out of the eight African countries studied.
To complete the study, a collaborative effort between the African Union, OECD, and other continental organizations, used OECD data to produce internationally comparable statistics on tax and nontax governmental revenues for the participating countries over a time span of 18 years.
The authors of the report said the data would provide a way for officials to determine if African countries were getting closer to meeting their development goals.
The report gathered data from Cameroon, Côte d’Ivoire, Mauritius, Morocco, Rwanda, Senegal, South Africa and Tunisia, all of whom volunteered to be part of the study. In order to provide technical training to those executing this project, Morocco held a workshop for the research team in Rabat during February 2015.
All of the countries featured in the report experienced an increase in tax revenues between 2000 and 2014. The highest levels of growth occurred in Morocco, South Africa, Rwanda, and Tunisia as all four countries’ tax revenues increased by 4.5 points or more in the time period studied. After Tunisia and Morocco at first and second place, the states with the highest rate of tax revenues as a percentage of their GDP in 2014 were South Africa, Senegal, Mauritius, Cote d’Ivoire, Cameroon and, lastly, Rwanda.
Researchers suspected that Tunisia and Morocco had higher tax revenues because they also have the top two social security tax rates among the countries studied. The pair collected the equivalent of more than five percent of their GDP as taxes from citizens to fund welfare programs, whereas the other countries collected less than two percent for similar programs.
The results will be discussed further at an African Union meeting in Addis Ababa on Sunday.