cover image: Taxes and Parafiscal Fees on Digital Infrastructure Services in Africa (English)


Taxes and Parafiscal Fees on Digital Infrastructure Services in Africa (English)

23 May 2024

This technical background paper evaluates the progress of African nations in establishing effective fiscal frameworks for digital infrastructure across the continent. Through a comprehensive comparative analysis of legislative, tax, and regulatory policies in over 20 African countries, the report synthesizes insights on the status and trends of telecom taxes and parafiscal fees, aiming to inform policy recommendations. The assessment reveals a notable wide range of approaches to taxing the sector, resulting in the application of additional taxes compared to other economic activities and a complex array of taxes and parafiscal fees that are not always aligned with tax principles and public administration principles. Taxes discriminate among economic activities; some are regressive, and others are difficult to administer. Parafiscal fees are not proportionate to the cost of providing the service or are not used as a mechanism to boost the sector's efficiency or achieve specific sector goals. Compared to levels observed in other sectors and regions, a high tax burden on telecom operators and telecom consumers characterizes the African telecom landscape. Establishing a clear revenue strategy that coherently links tax policy with tax administration is crucial for supporting economic transformation and the growth of the digital economy in Africa.
africa digitization infrastructure and growth governance in public sector central government central agencies public administration - information and communications technologies ict services


Niesten,Hannelore Maria L., Begazo Gomez,Tania Priscilla

Disclosure Date
Disclosure Status
Doc Name
Taxes and Parafiscal Fees on Digital Infrastructure Services in Africa
Product Line
Advisory Services & Analytics
Published in
United States of America
Rel Proj ID
3A-Governance And The Digital Economy In Africa -- P172417
ICT Services,Public Administration - Information and Communications Technologies,Central Government (Central Agencies)
TF No/Name
TF0B1369-AFR Digital Economy Governance and Anti-Corruption
Financial Sector Integrity,Job Creation,Investment and Business Climate,Data Development and Capacity Building,Financial Stability,ICT,State-owned Enterprise Reform and Privatization,ICT Solutions,Finance,Private Sector Development,Regulation and Competition Policy,Public Sector Management,E-Government, incl. e-services,Jobs,Business Enabling Environment,Data production, accessibility and use,Transparency, Accountability and Good Governance,Public Administration
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