Zimpapers Logo

Business Editor

ZIMBABWE will this week host a two-day high-level Africa Tax Policy Conference in Victoria Falls aimed at equipping regional member states to adequately respond to the taxation of the digital economy.

The African Tax Administration Forum (ATAF) and the Zimbabwe Revenue Authority (Zimra), supported by the African Development Bank (AfDB), are organising the event that will be held at a hotel on Wednesday and Thursday.

Finance and Economic Development Minister Professor Mthuli Ncube will be a key speaker alongside his regional counterparts, ATAF, African Union and World Bank executives. Commissioners of African tax administrators and local business leaders are also set to participate. 

As a member of ATAF, Zimbabwe hosts the event on the back of a successful mandate renewal by the membership of ATAF in last year’s annual event. This year the regional tax body is prioritising development of an African response to the taxation of the digital economy.

“Many African countries have reported concerns about the tax challenges they face as their economies become increasingly digitalised,” said ATAF.

“The challenges arising from digitalisation affect both direct and indirect taxes. On the direct tax aspect, the discussion is whether the current international tax rules sufficiently address the problems created by digital business such as social media, marketplace and search engine platforms.

“In terms of indirect taxes, the consumption of services can take place in various parts of the world, creating a problem on where to tax consumption.”

As such, ATAF said the purpose of this high-level dialogue is to bring together key stakeholders in both the ministries of finance and tax administration to form a proposed network that will ensure coordinated tax policy and tax administration decisions and actions in the ever-changing global tax environment. 

“Through a consultative process and dialogue, the meeting will outline priority as well as salient tax-related issues for collaboration between the ministries of finance and tax administrations. The framework will thus ascertain critical engagement on the objectives, impact and implementation of key policies,” it said.