News from the Financial Inclusion Summit 2019 Fintech Cohort: Red Flash

SMARTR TAX

 

Optimised tax collection and financial inclusion of the informal sector

The informal sector accounts for a large portion of the economy in Africa, 30-50% of the GDP. Taxation and local revenue collection from this sector is today a manual process with low efficiency. Improving tax collection is therefore of high priority for many countries and is also a top priority of the African Union Agenda 2063.

Digitizing Tax Payment can have dramatic benefits for emerging economies

Red Flash has developed a digital platform, SMARTR TAX, for local tax and revenue collection, especially targeted to the informal sector. With this platform information about people and their businesses is digitized, as well as the payments (P2G) of taxes and fees. SMARTR TAX is a cloud-based solution that requires no investment in IT-infrastructure, aside from tablets and smartphones.

With SMARTR TAX, Red flash helps to generate a significant economic impact on the local governments. The short term effect is that local revenues quickly can be doubled. In the long run, the revenue potential is a 5-10 times the current revenue. The improved revenue collection creates sustainable economic growth, which in the long run will help to reduce the dependency of foreign aid.

 

 

Aside from augmenting revenues, SMARTR TAX also helps to increase transparency and to reduce opportunities for corruption and criminal activities. The digitization of the informal sector enables also other financial services such as micro-credits and micro-insurance.

SMARTR TAX has been used for almost two years in Dakar Senegal with great success. Red Flash has now decided to offer the solution to more countries in Africa. Togo, Gabon, Guinea Bissau, Zambia and Malawi are next in line for implementing the solution. We welcome interested parties to contact us below:

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