Support from the Economic Commission for Africa for increasing tax revenues in the Sudan

Abstract

The report outlines the support provided by the Economic Commission for Africa (ECA) to increase tax revenues in the Sudan. It highlights the challenges faced by the Sudan's tax system, including low tax-to-GDP ratios, complex tax exemptions, and inefficient tax administration. ECA's assistance focused on modernizing tax administration and capacity development, with a particular emphasis on the Large Taxpayers' Office. The collaboration with the Egyptian Tax Authority facilitated knowledge transfer and the implementation of best practices. Key actions included updating tax return forms, enforcing withholding tax, strengthening penalties for non-compliance, and introducing e-filing and e-payments. The reforms led to a significant increase in tax revenues, from 1.0% of GDP in 2020 to 5.4% in 2022. The report also outlines future plans to continue enhancing tax administration and addressing the impacts of the ongoing conflict in the Sudan.