Taxation is the most sustainable, largest and stable source of state income. Tax has a redistributive function which can reduce inequality, especially through progressive taxation of income and wealth. Tax makes countries less dependent on foreign contributions and income from natural resources.
Tax revenues in developing countries continually fall short of what realistically could be obtained when analyzing these countries’ actual productive potential. In general, rich countries collect as a percentage of GDP more than twice as much public revenue as developing countries. In order to ensure pro-poor economic growth and essential public services, such as education and health care, developing countries need to raise more tax in ways that are progressive and effective.
In 2012 Oxfam and Tax Justice Network-Africa launched the CRAFT project in several countries. CRAFT stands for Capacity for Research and Advocacy for Fair Taxation. The involved countries are: Uganda, Mali, Senegal, Nigeria, Egypt, Ghana and Bangladesh. Our tax work is part of Oxfam’s Fiscal Accountability for Inequality Reduction program (FAIR-EiU) and links to Oxfam’s global campaign to fight inequality.
Our premise is that more equitable and increased taxation is critical for both poverty reduction and democratic governance. Our objective is to contribute to fair and pro-poor tax systems, more transparent and accountable fiscal policies and eventually the creation of more democratic states.
CRAFT aims to promote this by working together with country specific lead organizations to strengthen civil society. Our vision is that fair taxation will be achieved when active citizens contribute to the design and monitoring of fair tax systems and hold governments to account for their implementation. The CRAFT project has five intervention strategies to strengthen civil society:
This website will provide you with information about:
- WHY: the reasoning behind the project
- HOW: the intervention strategies to strengthen civil society
- WHAT: the campaign
- WHO: the organizations involved in the project
- COUNTRIES: country specific information and progress reports
Disproportionate taxation of the citizens, in comparison to corporations, has profound implications for the development of a country. For the long term effectiveness of other projects in these countries it is crucial that we address this issue promptly.
For more information, please contact: