Historical Perception Of This Tax Thing In Africa
Africa is at a crossroads in economic development, burdened by colonial experience, experience of less capitalistic at independence and transitions to capitalism.
At independence, most of the means of production in Africa were with the state and the state did not tax itself – so, less emphasis on taxation. As the state began to relinquish more and more of the means of production to the private sector (companies and individuals) in line with global trends, taxation became significant and inevitable to fund public infrastructure to lower living costs for both the rich and the poor in society. Africa missed that equation and has paid dearly for it.
Africans’ perception of taxation as exploitative even after independence stems from the negative legacy of colonial taxation, which was designed for economic extraction and linked to submission and punishment, not public service.
Post-colonial governments have struggled to build public trust, with some administrations failing to effectively invest tax revenues into public infrastructure and social services, while the informal sector remains largely untaxed. This disconnect between taxation and tangible public benefit, combined with historical exploitation, perpetuates the view that taxes are for the benefit of the elite or for external development rather than for the public good.
Legacy of Colonial Taxation
Exploitation and Extraction: Colonial powers imposed taxes primarily to extract resources and generate revenue for the metropolitan countries, rather than to fund development within the colonies.
Tool of Control: Taxes were often enforced through coercion, with non-payment treated as a sign of insubordination or rebellion, rather than a request for service in return.
Disconnection from Public Services: Tax revenue was not primarily used for the benefit of the local population, further solidifying the idea of taxation as an oppressive force.
POST INDEPENDENCE CHALLENGES
Lack of Public Trust: The long history of exploitative taxation, combined with continued economic inequality and corruption in some post-colonial states, erodes public trust in the fairness and purpose of tax systems.
Failure to Invest in Public Infrastructure: Many African governments have failed to effectively mobilize tax revenue to fund public infrastructure and social services like healthcare and education.
Untaxed Informal Sector: Efforts to capture resources from the largely informal sector, which constitutes a significant portion of many economies, have been minimal or poorly designed, failing to generate sufficient public funds.
Unfair Tax Structures: The tax base remains underdeveloped, with lucrative sectors often under-taxed, further undermining the principle of fair contribution and jeopardising development goals.
CONSEQUENCES
Perpetuation of Exploitative Perception: The continued failure to demonstrate clear returns on tax contributions reinforces the historical narrative of taxation as a burden, rather than a collective investment in public goods and infrastructure.
Hindrance to Development: The low mobilization of tax revenues prevents countries from adequately funding public services and sustainable development initiatives, trapping them in cycles of underdevelopment.
WRITTEN BY CAPT. SAMUEL AYODELE CAULCRICK, INSTRUCTOR/AVIATION CONSULTANT
