Readiness for the AfCFTA by Member States' Domestic Tax Policies
The AfCFTA aims to accelerate economic growth for member states. A critical aspect of this is collecting revenue spurred by income tax and value-added tax, supported by improved investment and consumerism. The AfCFTA seeks to eliminate tariffs between member states, which will deplete this source of revenue for member states, most of which are highly dependent on this form of revenue. To curtail the impact of this loss of income, member states need to have the capacity to effectively administer domestic tax policies to take advantage of this anticipated revenue from income tax and value-added tax. Member states' readiness in this area is of concern and must be addressed by providing adequate support to domestic institutions with expertise and knowledge.