Revenue Administration in Sub-Saharan Africa - International Tax ...

A. An overview of funding mechanisms for selected revenue bodiesIntroductionIdeally, revenue bodies should have a balanced mix and level of funding to effectivelydischarge their roles and responsibilities. Table 11 below shows funding mechanismsused in the surveyed countries.Table 11: Funding mechanism for revenue bodies in the surveyed countriesCountry/AgencyFunding mechanismBenin • Appropriation through ParliamentBurundi • Appropriation through ParliamentEthiopia • Appropriation through ParliamentKenya • Appropriation by Parliament.• Funding limited, in law, to 2% of estimated revenuecollections.• Bonus payable to revenue body—2% of surplus collection• In case of bilateral agency arrangements between KRA andother public body—1.5% of collections is retained as cost ofcollection 70South Africa • Appropriation through ParliamentUganda • Appropriation through ParliamentTanzania • Appropriation through ParliamentBotswana • Appropriation through Parliament. Retention of apercentage of tax revenue as a cost of collection isprovided for, with approval by the Minister of Financethrough Gazette NoticeRwanda • Direct retention of a maximum of 3.5% of revenuecollected• A bonus of 5% of surplus collectionMalawi • Direct retention of 3% of revenue collected.• Retention of a bonus of 5% of collection surplus, subject toa 3.5% limit on total cost of collectionZambia • Appropriation through ParliamentSenegal • Appropriation through ParliamentMauritius • Appropriation through ParliamentGhana • Appropriation through Parliament70 Cost of collection is defined as revenue administration expenditure as a ratio of revenue estimates.48