By Luke Anami

African governments should strengthen their tax collection processes to make them efficient, instead is introducing more tax collection measures that end up scaring off investors. This was the verdict from Russell Eastaugh Director of Tax at PriceWaterCoopers has said. He also urged governments to embrace Value Added Tax, saying its benefits far outweigh other forms of tax.

"Value Added Taxes create stronger incentives to collect than a sales tax does and should be strengthened," Eastaugh said in a press briefing during the 14th African Tax and Business Symposium held on Monday at Nairobi Safari Park hotel. He said while sale tax gives buyers a mechanism to avoid or evade the tax â€" by persuading the seller that the buyer is not really an end consumer, and therefore the seller is not legally required to collect it â€" it is difficult for consumers to avoid paying tax on VAT.

"With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products. Consumers pay tax without realising it, making it easier to administer," Eastaugh, who has worked in Nigeria and Uganda among other African countries, said.

He also urged African governments to simplify their tax regimes in order to make them easy to apply. He singled out Income Tax, Corporate Tax and Pay As You Earn (PAYE) as major tax components, which should be improved so as to avoid loss of revenue due to poor implementation procedures.