African nations have expressed the need for an inclusive global tax system by the United Nations.
While addressing a news conference with other permanent representatives at the UN in New York, the leader of the African Group and Permanent Representative of the Republic of Zambia at the United Nations, H.E. Dr. Chola Milambo stated that Africa needs a new Framework Convention on International Tax Cooperation.
According to him, the Framework Convention is needed to correct the faults in the current system, which usually neglects the unique challenges and perspectives of developing nations.
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The proposal of the Framework Convention recognizes the contributions of existing bodies like the OECD and the UN Tax Committee, while also acknowledging their limitations in fully representing the interests of all countries, especially those in the developing world.
He continued that it would ensure equity and inclusivity in the global tax system. The goal is for every country, regardless of its size or economic power, to have an equal seat at the table in dictating the agenda for international tax cooperation.
An equal tax system will unleash a greater potential for spending in vital sectors such as healthcare and education, crucial for Africa and the Global South.
The increased revenue generated will help to put resources where they are needed the most, aiding sustainable growth and development.
Milambo stated that generating more revenue for the global south will help ensure less dependence on Overseas Development Assistance (ODA).
Also speaking on the issue at hand, the outgoing Chairman of the Independent Corrupt Practices and Other Related Commission, Bolaji Owasanoye voiced his support for the proposed Framework Convention on International Tax Cooperation and acknowledged its necessity.
Owasanoye, who was a member of the United Nations High-Level Panel on International Financial Accountability, Transparency, and Integrity for Achieving the 2030 Agenda mentioned that the framework convention was necessary to eliminate the imbalance in tax framework and the profit shifting which has hindered Nigeria and other developing nations from holding on to multinational corporations (MNCs) revenue for tax purposes.
He therefore urged the global north countries to ease up on their opposition to a UN-driven multilateral tax convention for the sake of global aspiration to achieve sustainable development goals and a world where every country is economically independent.
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