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Prosper Ndlovu Bulawayo Bureau

The African Tax Administration Forum (ATAF) has released a series of suggested measures that African revenue authorities should consider in an effort to alleviate the impact of the Covid-19 global pandemic on the continent’s ability to raise tax revenues.

The document comes at a time when an increasing number of African countries are being affected by the deadly virus, with devastating effects on health and national economies, with crippling impact on domestic resource mobilisation.

Although the impact of the Covid-19 has been, thus far, most damaging in Asia, Europe and America, many African countries, including South Africa, Algeria, Morocco and Egypt, have crossed the 1 000 mark in terms of their number of confirmed cases. Zimbabwe has recorded two deaths out of 11 cases so far.

The trend heightens the need for African revenue authorities to swiftly conduct risk assessments in terms of health and safety of staff and taxpayers. This is critical as it informs potential scenario planning, which will determine appropriate action plans, says ATAF.

In view of business disruptions due to Covid-19 outbreak, the sole regional tax body has urged increased use of digital channels as part of flexible tax payment plans, consideration of deadline extension for filing tax returns as well as suspension of tax penalties and interests.

The measures are contained in the ATAF’s “Suggested Covid-19 Measures for Revenue Authorities”, which seek to provide guidelines to respond to the tax-related challenges, current and anticipated, posed by the pandemic. The document takes into account the peculiarities of African tax jurisdictions and systems, as well as the uniqueness of the African socio-political and economic landscapes.

The measures are a combination of short-term actions that can be immediately implemented by tax administrations and medium to long term interventions, which may require legislative or policy changes for their effective implementation. These also include proposals to suspend compliance and enforcement measures, while prioritising issues involving movement of essential goods.

ATAF has said the Covid-19 situation would need countries to temporarily reduce tax rates, offer tax rebates and VAT exceptions or zero rating of essential items as options to reducing economic burden on tax payers. By and large, these measures would likely force revenue authorities in the continent to review their collection targets and require thorough communication with tax payers and key stakeholders.

ATAF executive secretary, Mr Logan Wort, has stressed the need to act swiftly and efficiently, while the infection rates are still relatively low on the continent.

“African countries are fortunate as the pandemic has not affected the continent to the extent that it has devastated other parts of the world.

“This gives us a window of opportunity to learn from the lessons of countries who are further along the curve in their battle against Covid 19,” he said in his foreword.

Zimbabwe has already embraced some of the proposed measures with Zimra having taken steps to enhance safety of it’s staff, while scaling up digital payments and tax filing.

Treasury last week also announced fiscal measures that include duty free importation of materials and equipment needed to enhance the country,’s fight against Covid-19.

ATAF’s “Suggested Covid-19 Measures for Revenue Authorities” form part of the organisation’s efforts to help members limit the damaging impact of the virus on domestic resource mobilisation.