Mary Baine: Africa's Tax Systems Can Improve Despite Challenges

Mary Baine, the executive secretary of the African Tax Administration Forum (ATAF), is driving efforts to reform tax systems continent-wide. In a lakeside interview at Speke Resort Munyonyo, the soft-spoken leader highlighted her six-month tenure while noting nine years of prior involvement with ATAF.

Africa faces fiscal pressures from high public debt and unpredictable aid, pushing reliance on domestic revenue. The continent’s tax-to-GDP ratio lingers at 16%, far below global benchmarks. Baine targets 20% through better laws, policies, and digital tools.

ATAF, founded in 2009, supports 44 member administrations with training for over 17,000 officials and recovery of $2.8 billion in taxes. Yet, rapid business digitization outpaces tax agencies, demanding urgent upgrades.

Key hurdles include overly complex taxes overlapping at national and local levels, confusing businesses and hampering efficiency. Baine calls for streamlining, like Nordic models with just five main taxes, to enhance compliance.

Global tax rules disadvantage African ‘source’ countries, allowing profit shifting by multinationals. ATAF pushes UN-led reforms for fairer frameworks where every nation has a voice.

Economic growth often fails to lift revenues due to weak capacities, generous incentives, and sector challenges in telecoms, finance, and mining. Baine critiques tax holidays that spark a ‘race to the bottom’ without delivering sustained investment.

On the informal sector, she urges data-driven targeting of high-net-worth evaders over small traders, citing cases uncovering thousands of new taxpayers. Compliance hinges on trust—visible public services like roads and schools foster willingness to pay.

As a trailblazing woman in tax leadership, Baine promotes the Women in Tax Network and eyes ATAF expansion to all 54 African states, building sovereign expertise.

Source: Daily Monitor (Uganda)