Exploring the Development of Mobile Money Markets and Revenue Collection from Digital Financial Services Taxes in Africa

Published: Aug. 1, 2024

This policy brief examines the rapid expansion of mobile money and digital financial services, recent trend introducing taxes on these services in Africa. The study focuses understanding how market developed Ghana, Kenya, Nigeria, Tanzania, Uganda, Zimbabwe, new contribute to tax revenue. trends MM DFS portray a characterised by resilience ability recover. We show how, after introduction taxes, there was an initial decrease usage countries studied, but markets typically recovered their momentum. Kenya’s rebounded quickly transaction fees – even faster than value. For governments concerned, we that provide modest, yet important, revenue stream, generally contributing about 1 per cent 3 total Zimbabwe is outlier, at almost 10 cent. also observe forecasting this remains challenge fast-evolving market. conclude offering suggestions for key areas future research taxation.

Language: Английский

Crafting a Model for Taxing Digital Financial Services

Published: Aug. 1, 2024

The taxation of mobile money (MM) and other digital financial services (DFS) is a multifaceted evolving issue. It has become significant concern source controversy over the last decade. As yet, there no universally accepted standard approach to taxing DFS, but complexity issues underscores need for clear holistic framework. While much been written about tax direct guidance policy-makers scarce; than, perhaps, avoid them at all (GSMA 2023a, 2023b; Vodafone 2023). In this policy brief we aim fill that gap, offer some specific thoughts how regime DFS might be constructed, drawing on experience from DIGITAX research programme. We do not claim our model comprehensive, or evidence base it complete, believe preferable leaving vacuum in guidance.

Language: Английский