Middle East & Africa | Tax them digitally

African governments hope digital taxes will fill a budget hole

Putting levies on mobile money is easier than taxing profits of multinationals

A customer uses an MTN Group Ltd. mobile money payment kiosk in Accra, Ghana, on Tuesday, April 22, 2021. MTN Group Ltd. values its mobile-money arm at about $5 billion and will consider a listing of the division, joining African wireless carriers trying to monetize a service that is particularly popular on the continent. Photographer: Nipah Dennis/Bloomberg via Getty Images
|KAMPALA

The digital economy is bringing Africans together. The same cannot be said for attempts to tax it. Levies on mobile and internet services have sparked street protests in Uganda, cabinet squabbles in Nigeria and a parliamentary brawl in Ghana. In August Congolese officials even confiscated the passports of telecoms executives to try to make them cough up.

This article appeared in the Middle East & Africa section of the print edition under the headline “Tempting—but not so easy”

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From the October 15th 2022 edition

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