ATAF lobbies for tax reforms to speed up AfCFTA
THE African Tax Administration Forum (ATAF) has emphasised the importance of harmonizing tax systems and advocating for revenue-generation mechanisms that would sustain government finances while fostering trade liberalisation.
The regional tax lobby body delivered the message during the 57th Session of the Economic Commission for Africa (ECA): Conference of African Ministers of Finance, Planning, and Economic Development held in Addis Ababa, Ethiopia this week.
Outgoing conference chairperson, Professor Mthuli Ncube, represented Zimbabwe at the conference, which reinforced the urgency of transformative actions to drive the implementation of the African Continental Free Trade Area (AfCFTA).
During the meeting, ministers, policymakers, and technical experts discussed strategies for strengthening regional integration and unlocking the full potential of intra-African trade.
The conference underscored, in particular, the critical role of tax and customs policies in ensuring that AfCFTA delivers on its promise of economic transformation.
“ATAF used this platform to strengthen its collaboration with key continental institutions, including the United Nations Economic Commission for Africa (UNECA), the African Union (AU), the African Development Bank (AfDB), and Afreximbank,” said the organisation in a post conference statement.
“These partnerships remain essential in advancing tax and customs reforms that align with AfCFTA’ s objectives, ensuring that trade policies are designed to enhance rather than hinder economic integration.”
According to ATAF, one of the pressing concerns raised at the conference was the financial impact of reducing tariffs under AfCFTA.
“Many African governments rely heavily on trade taxes for revenue, making it necessary to explore alternative sources of income.
“ATAF advocated for tax policy reforms that would maintain fiscal stability while promoting trade facilitation,” said the agency.
“Discussions focused on optimising domestic taxation to support revenue mobilisation, enhancing digital tax solutions, and strengthening indirect tax measures to ensure sustainable government financing.
“The need for improved tax administration and coordination was also emphasised to help countries navigate the evolving trade landscape.”
ATAF has since its establishment championed the adoption of enhanced domestic revenue mobilisation strategies, stressing the importance of strengthening tax administration, broadening tax bases, and harnessing digital solutions to improve tax collection efficiency.
Through its active engagement at the conference, ATAF said it reaffirmed its commitment working closely with its partners towards shaping effective tax and trade policies that support AfCFTA implementation and fostering sustainable economic growth across Africa.
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