Business

‘It led to revenue losses’: Tinubu calls for review of global taxation

President Bola Tinubu has called for a review of global taxation, saying redressing the imbalance in the international tax regime has become imperative.

Tinubu made the call at the Third South Summit of the Group of 77 and China which commenced in Kampala, Uganda, on Sunday, January 21, 2024.

The president, who was represented by the Minister of Budget and Economic Planning, Abubakar Bagudu, said the issue of global taxation is pressing because it impacts developing countries.

He said: “The current international tax systems, largely shaped by the interests of more affluent nations, often leave developing countries at a disadvantage, especially in taxing digital economies.

“This systemic imbalance has led to significant revenue losses, hampering our efforts towards sustainable development and economic self-reliance.”

Tinubu stated that Nigeria, alongside other member states of the African Group supported a historic initiative at the United Nations calling for a framework convention on tax.

This resolution, according to him, marks a pivotal step towards establishing a more equitable and inclusive global taxation.

Expressing Nigeria’s appreciation to all the countries that supported the global tax review initiative, President Tinubu said their solidarity reflects “our shared commitment to rectifying the inequities of the current tax system and fostering a more just economic order”.

Reaffirming Nigeria’s commitment to South-South economic collaboration, the president spoke of 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, Tinubu advocated the revival of the ACRM.

“This is crucial for coordinated information dissemination, facilitating access for international entrepreneurs and joint venture partners, and addressing challenges in raw material development that hinder industrialization and economic growth,” he added.

President Tinubu also restated, at the summit, Nigeria’s earlier position on Israel’s attack of Palestine over Gaza, saying the recent developments demand “our immediate attention and action”.

Tinubu equally spoke against any form of indiscriminate violence, stressing the urgent need to address humanitarian concerns, ensuring the protection and dignity of all civilians affected by the crisis.

The summit is being attended by many heads of state and government as well as heads of international organisations, including United Nations Secretary-General, Antonio Guterres.

The Star