Africa’s Tax Systems Worsen Inequality, Says Oxfam

Accra: Africa's tax policies are contributing to increasing inequality across the continent, according to Mr. Mohammed-Anwar Sadat Adam, the Country Director for Oxfam, an international charity organization. He highlighted that the regressive tax systems are structured to favor the wealthy, resulting in low-income citizens shouldering a higher tax burden relative to their earnings compared to the affluent.According to Ghana News Agency, Mr. Adam voiced these concerns during the 7th College of Humanities International Research Conference and the 4th Staff Awards Ceremony, held at the University of Ghana's Cedi Conference Centre. The event, which spanned two days, focused on the theme: 'Bridging Inequalities in a Changing World: Advancing Inclusive Growth, Resilience, and Sustainable Natural Resource Management.' The conference served as a platform for research experts from the West African sub-region to discuss policy reforms aimed at addressing the inequality gap, with academics presenting their research fi ndings and papers.Mr. Adam noted that Africa remains the only region where taxes on property and wealth fail to facilitate redistribution from the affluent to the less fortunate. He pointed out that while the rich benefit from numerous tax incentives and exemptions on corporate income, labor is taxed heavily. "For every dollar African countries raise through taxes on income and profit, they collect more than two dollars through regressive indirect taxes such as Value Added Tax (VAT), which often disproportionately affects the poor," he stated.He also presented data showing that African governments collect less wealth tax compared to any other continent. Despite a nearly 25 percent decline in wealth tax, there has been a 20 percent increase in social security charges linked to salaries and a 13 percent rise in income taxes.Dr. Anthony Yaw Baah, Chairperson of the Ghana Statistical Service Board, commented on Ghana's economic growth, acknowledging that inequality persists with many young people remaining unemployed. Citing a former Vice President, Dr. Baah emphasized that job creation is vital for achieving inclusive growth. He stressed that economic growth cannot be truly inclusive without providing employment opportunities for citizens and the youth.Professor Nana Aba Appiah Amfo, Vice Chancellor of the University of Ghana, underscored the importance of the conference, noting its alignment with the university's priorities such as offering a transformative student experience, forming strategic partnerships, and promoting inclusivity. She added that while many challenges are global, solutions must be locally grounded, and the research findings are both globally relevant and locally applicable.