Technology and Trade: A gateway to developing African countries through tax collection
It is not surprising that, particularly in developing countries, the initial, experimental attempts to digitalize and automate tax administration took of from customs offices, usually in parallel with broader reorganization reforms of customs bureaucracies.
Trade and customs taxes account for a notable share of total tax revenues in Africa where they account for 14 percent of tax revenues, relative to 4 percent in other regions.
Second, in relation to the above, technology could greatly improve the enforcement of tax collection and monitoring of performance. Using the information on tax liabilities and taxable entities, a sophisticated IT system could embed independent valuation reports from third parties and introduce explicit monitoring tags informing inspectors of high-risk declarations.