Simplified Taxation in Africa: What We Know – and Need to Know

Most economic operators in Africa are small and informal firms that fall under the purview of presumptive or simplified tax regimes (STRs). These taxes are expected to fulfil a range of functions, from raising revenue to facilitating formalisation and improving revenue authorities’ data, and yet their effectiveness and impact are surprisingly under-researched. Meanwhile, emerging evidence suggests that STRs often raise little revenue, disproportionately impact low-income earners, and are inconsistently applied. This policy brief summarises what we know about simplified taxes in Africa, who pays them, and why they matter, while highlighting gaps in existing knowledge. It makes the argument that there is a need for a new policy conversation on simplified taxation, and one that is data-driven and evidence-based.