Africa’s tax policies are reinforcing inequality by unfairly burdening the poor while offering generous exemptions to the wealthy, according to Oxfam.
The advocacy group claims that current systems are designed to maintain economic imbalance rather than correct it.
Mohammed-Anwar Sadat Adam, Oxfam’s country director in Ghana, highlighted that the continent relies heavily on indirect taxes like VAT, which take a larger share of income from low-earners than from the rich. For every dollar African nations collect from income and profit taxes, they raise more than two dollars through these regressive consumption taxes.
Meanwhile, taxes on wealth and property have dropped by nearly a quarter across the region. At the same time, payroll-linked social security contributions and income taxes have risen. This shift places the tax load squarely on workers and consumers rather than on capital or assets.
The critique was delivered at a research conference at the University of Ghana, where economists and officials echoed concerns about non-inclusive growth. Dr. Anthony Yaw Baah, from the Ghana Statistical Service Board, noted that even as GDP rises, joblessness among youth remains a stubborn problem.
Why should you care? Because unfair tax systems don’t just widen the gap between rich and poor—they limit opportunities for everyone by starving public services of fair funding.
The conference served as a platform for academics and policymakers to explore pathways to more equitable economic governance. Proposals included closing corporate tax loopholes, strengthening property taxes, and using revenues to fund social protection and job programs.
True change, experts say, will require political courage to redesign tax architectures that currently favor the powerful.
Source: newsghana.com.gh
