African Countries Call For Inclusive Global Tax System At United Nations

African countries have called for an inclusive global tax system by the United Nations.

The call was made by the leader of the African Group and Permanent Representative of the Republic of Zambia at the United Nations, H.E. Dr. Chola Milambo while addressing a news conference with other permanent representatives at the United Nations in New York.

According to Milambo, Africa needs a new Framework Convention on International Tax Cooperation to rectify the historical imbalance in global tax governance and offer a more equitable platform for dialogue and decision making.

He said: “This Framework Convention addresses the critical shortcomings of the current system, which often sidelines the unique challenges and perspectives of developing nations.

“Our proposal acknowledges the contributions of existing bodies like the OECD and the UN Tax Committee, while also recognizing their limitations in fully representing the interests of all nations, particularly those in the developing world.”

Milambo also added that the goal of the proposed framework convention was to ensure that all countries, regardless of their size or economic power, have an equal seat at the table in setting the agenda for international tax cooperation.

He further explained that greater potential for spending would be unlocked in critical sectors like healthcare and education, pivotal for Africa and the Global South.

He said: “The increased revenue generated will enable us to allocate resources where they are most needed, supporting sustainable growth and development.

“This approach is encompassed under the umbrella of ‘sustainable development’, ensuring that our initiative directly contributes to the Sustainable Development Goals (SDGs), reflecting our shared commitment to a future where holistic progress and well-being are accessible to all.”

The leader said by reforming the international financial systems and ensuring fair taxation, Africa can significantly reduce the strain on international aid.

He added that more revenue for the Global South translates to less dependence on Overseas Development Assistance (ODA), fostering a more self-reliant and resilient world economy,” the African Group chair further noted.

The outgoing Chairman of the Independent Corrupt Practices and Other Related Commission, Bolaji Owasanoye, expressed his support to the proposed Framework Convention on International Tax Cooperation.

Owasanoye, who was a member of the United Nations High-Level Panel on International Financial Accountability, Transparency and Integrity for Achieving the 2030 Agenda (also known as the FACTI Panel), said the framework convention was necessary.

He said this is to remove the inequality in tax framework and the profit shifting which have prevented Nigeria and other developing countries from retaining multinational corporations’ (MNCs) revenue for tax purposes.

Owasanoye said: “It should not surprise us that the global north is resistant to multilateral convention or a framework convention as both will remove the inequality in tax framework and the profit shifting preventing developing countries from retaining MNCs revenue for tax purposes within jurisdiction of operation.

“I call upon the global north countries to soften their resistance to a UN driven multilateral tax convention in the interest of global aspiration to attain sustainable development goals and a world where no country is dependent on another economically.”

He also assured that Nigeria would continue to play a leading role in the process being the biggest victim of the Illicit Financial Flows (IFFs) in Africa, particularly the South of Sahara.