African countries call for inclusive global tax system

The envisioned framework convention seeks to rectify the limitations of the current system, particularly in representing the interests of all nations, especially those in the developing world. Its goal is to ensure equal participation of all countries, irrespective of their size or economic power, in setting the international tax cooperation agenda. The anticipated result of establishing a more equitable tax system is the unlocking of greater potential for spending in crucial sectors like healthcare and education, crucial for Africa and the Global South.

Dr. Milambo reiterated the significant human aspect of this convention, emphasizing that by reforming the international financial systems and ensuring fair taxation, the strain on international aid could be significantly reduced. Additionally, he appealed for understanding from Africa’s partners such as the Organisation for Economic Cooperation and Development, European Union, United States, and United Kingdom, recognizing the importance of their support in turning this vision into a reality.

The proposed framework convention has garnered support beyond Africa, with outgoing chairman of the Independent Corrupt Practices and Other Related Commission (ICPC), Prof. Bolaji Owasanoye, expressing his backing for it. He stressed the necessity of removing inequality in the tax framework and profit shifting to enable developing countries to retain multinational corporations’ revenue for tax purposes within their jurisdictions of operation.

Prof. Owasanoye called upon the Global North countries to soften their resistance to a UN-driven multilateral tax convention, highlighting the importance of global aspiration to attain sustainable development goals and create a world where no country is economically dependent on another.

Highlighting Nigeria’s significant role in the process, particularly as the biggest victim of illicit financial flows (IFFs) in Africa, Prof. Owasanoye affirmed the country’s commitment to playing a leading role in these efforts.