Taxes serve as the fuel that keeps governments functioning, allowing them to address the needs of their citizens.
According to the World Bank, taxes are necessary to fund investments in human capital, infrastructure, and the delivery of services to individuals and enterprises.
However, constructing a good and fair tax system is difficult, especially for developing countries. Governments are constantly in need of cash, but the major difficulty is determining not only how much but also what to tax.
The goal is to create the necessary revenue without relying too heavily on government borrowing, but also not impeding economic activity or discouraging taxpayer participation.
Wisevoter highlights the global diversity of taxation systems, with each country having unique arrangements. Individual and corporate taxes vary widely from country to country, ranging from extremely cheap to very high.
Personal income tax varies by country and can range from 0% to 50%. And even within a single country, taxes may vary depending on the type of goods and services purchased.
Below are 10 African countries with the highest tax burden:
| Rank | Country | Tax burden | Global rank |
|---|---|---|---|
| 1 | Algeria | 37.2% | 17th |
| 2 | Seychelles | 32.4% | 31st |
| 3 | Tunisia | 32.1% | 33rd |
| 4 | Eritrea | 30.5% | 37th |
| 5 | South Africa | 29.1% | 40th |
| 6 | Morocco | 27.8% | 46th |
| 7 | Mozambique | 27.1% | 48th |
| 8 | Djibouti | 21.8% | 69th |
| 9 | Mauritius | 20.4% | 74th |
| 10 | Lesotho | 20.2% | 76th |