In a stride to raise domestic revenue through efficient and effective tax systems the Southern African Development Community (SADC) Secretariat convened a capacity building Workshop on
the revised Tax Expenditure Model on 16-20 October 2023, in Johannesburg, South Africa. This is an effort to enhance good governance in the tax area, in particular: decisions on tax incentives, tax collection efficiency, a broader tax base and greater action on dealing with tax evasion and illicit financial flows in the region, in line with the decision of the Ministers of Finance and Investment which was held in July 2023.
The workshop comes as a continuation of work of the SADC Tax Subcommittee towards creation of an enabling investment and business environment through improvement of tax incentives administration and rationalisation in the SADC region, supported by EU - Support to Improving the Business and Investment Environment in SADC Region programme (SIBE).
Tax expenditures have a significant impact on Member States’ ability to mobilise domestic revenue and if not monitored closely and assessed consistently, they may jeopardise the transparency of national budgets and lower the effectiveness of tax systems. The SADC Tax Expenditure Model was adopted in 2015 to enable Member States to estimate the tax revenue costs (revenue foregone) of tax incentives offered in their jurisdictions. The tool is designed to measure the benefits and effectiveness of tax incentives in meeting their intended objectives.
