Taxation and State-Society Relations in Sub-Saharan Africa

THE CASES OF CAMEROON, MOZAMBIQUE AND SOUTH AFRICA

The centrality of taxation in the making and functioning of modern states is widely recognized in academic literature as well as in public policy debates. The powers and legitimacy of the state, allocation of public and private resources, financing of public administration and the ability of government to deliver services are some of the many themes of socio-political and economic life that run through the issue of taxation.
Moreover, the autonomous development of nations and their economic growth are highly conditioned by their fiscal systems. Because modern states, independently of the political system, depend on ‘collection of taxes on a large scale’, it is a task ‘always … at the forefront of state activities’ (Giddens, 1985:102; 1981:170). Taxation has the potential to contribute to the development and strengthening of democratic
institutions and processes and, accordingly, to good governance and accountability. When revenue from domestic taxation is small, the political elite is less inclined to attend to the needs of the masses. Once the state imposes a significant fiscal burden on its citizens, rulers tend to become more responsive to popular demands. Tax policies can also be used as tools for redistributive measures to promote social justice and equality.