Tinubu calls for review of global tax system

Estimated reading time: 5 minutes

President Bola Tinubu has emphasised the need for a global taxation review, stating that addressing the imbalance in the international tax regime was imperative.

The Nigerian President, in a statement by Folasade Boriowo, the Director of Information at the Ministry of Budget & Economic Planning, affirmed the country’s belief in and commitment to multilateralism for addressing global challenges.

At the Third South Summit of the Group of 77 and China in Kampala, Uganda, President Tinubu conveyed Nigeria’s stance on these issues. He highlighted the pressing nature of global taxation, particularly its impact on developing countries.

President Tinubu pointed out that the current international tax systems, influenced by more affluent nations, often disadvantaged developing countries, especially in taxing digital economies. He emphasised that this systemic imbalance led to substantial revenue losses, hindering efforts towards sustainable development and economic self-reliance.

In response, Nigeria, along with other Member States of the African Group, spearheaded a historic initiative at the United Nations, advocating for a Framework Convention on Tax. According to him, this resolution marks a pivotal step towards establishing a more equitable and inclusive global tax system.

Represented by the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, at the summit with the theme “Leaving No One Behind,” Tinubu expressed gratitude to all countries supporting the global tax review initiative. He noted that their solidarity reflects a shared commitment to rectifying the inequities of the current tax system and fostering a more just economic order.

RELATED POSTS

• Tinubu commiserates with Oyo Govt, victims over Ibadan explosion
• Education, healthcare ‘ll receive more attention –  Tinubu assures Nigerians
• Tinubu celebrates Bisi Akande at 85
• Tinubu appoints new leadership in Arts, Culture, and Creative Economy Sector
• Tinubu suspends school feeding, N-Power, other social investment programmes

Reaffirming Nigeria’s commitment to South-South economic collaboration, President Tinubu highlighted the critical role of the Action Committee on Raw Materials (ACRM) of the G-77, established in 1987 for enhancing cooperation in the development and processing of raw materials. While acknowledging the importance of comprehensive data on raw material availability and location, he advocated for the revival of the ACRM.

He emphasised the imperative of resuscitating the ACRM, focusing on data-driven strategies and information systems to improve trade terms, foster economic self-reliance, and enhance resilience among developing countries.

At the summit, President Tinubu reiterated Nigeria’s earlier position on Israel’s attack on Palestine over Gaza, stating that the recent developments in the State of Palestine demanded immediate attention and action.

Speaking against any form of indiscriminate violence, he underscored the urgent need to address humanitarian concerns, ensure the protection, and uphold the dignity of all civilians affected by this crisis.

“As a member of this Group, Nigeria remains dedicated to advocating peaceful solutions in global conflict zones, reflecting our commitment to the stability and prosperity of the African continent and the global community.”

Drawing the attention of the summit to the 75th anniversary of the United Nations, the Nigerian leader spoke of Group of 77’s enduring commitment to fostering a world where no one is left behind – where every individual has an equal opportunity to thrive. 

This year’s Summit and its theme resonate with the aspirations and principles of G77.

He added: “Considering the interconnected nature of our world, we need a concerted action to tackle issues of climate change, eco-disparities, environmental concerns and technological programs in this post-pandemic era.

“Similarly, emerging global challenges, such as the digital divide, cybersecurity, illicit financial flows, terrorism and corruption, are interconnected threats that undermine our socio-economic stability and require a united approach by this assembly. 

“With illicit financial flows alone estimated to siphon off billions of dollars annually from economies, especially in the Global South, the urgency for early action has never been greater,” he said.

President Tinubu pointed out that Nigeria recognizes the urgency to combat these challenges, particularly illicit financial flows. 

“We advocate enhanced international cooperation, stronger regulatory frameworks and a robust collaborative approach. 

“By uniting our efforts and sharing best practices, we can promote transparency, accountability and a more secure, prosperous future for all G77 and China member states.”

Reflecting on these global challenges, he said Nigeria acknowledges the multifaceted nature of the issues we face. “Our focus remains steadfast on rebuilding our economies, fortifying healthcare systems and securing sustainable livelihoods for our citizens.”

President Tinubu also spoke of the importance of technical cooperation and capacity building in addressing current global challenges. 

“As a country, We have been actively engaged through the Directorate of Technical Aid Corps (DTAC) in fostering international cooperation in the spirit of South South Collaboration. 

“DTAC, as a key instrument of Nigeria’s foreign policy, facilitates the exchange of expertise and knowledge with 38 African, Caribbean and Pacific (ACP) countries, dispatching over 30,000 skilled professionals since its inception in 1987.  

“These efforts enhance our collective ability to fortify health and educational system and secure sustainable livelihood for our citizens.

“In addition to DTAC’s contributions, Nigeria’s commitment to enhancing South-South cooperation is further demonstrated through our establishment of the Directorate for Technical Cooperation in Africa (DTCA),” he added. 

By leveraging the strengths of DTCA, the President said Nigeria aims to deepen ties with fellow African nations, sharing resources and expertise to promote mutual growth and development. 

Similarly, in her commitment to South-South collaboration, Nigeria also emphasizes the significance of Triangular cooperation. 

“This partnership model, involving developing countries, developed nations and international organizations, offers a comprehensive approach to address global challenges. 

“Such cooperation enriches Nigeria’s strategies for sustainable development, ensuring inclusivity and maximizing the impact of our collective efforts.”

While reaffirming Nigeria’s commitment towards multilateralism and the objectives of the Bandung principles, the President said as G77 looks towards the future, the organization should envision a movement that is responsive to the needs and aspirations of Member States.