• Political support needs to be coordinated across countries to ensure that tax regimes race to the middle.
• Centre for Trade Policy and Development observes it will be very important for African countries to have one voice.
• Tax Justice Network Africa report indicates that Africa as a continent is losing US$88 Billion Annually.
Minister of Finance and National Planning says addressing the scourge of illicit financial flows requires strong international cooperation and concerted efforts of stakeholders, developed and developing countries, the private sectors and civil society.
Dr. Stumbeko Musokotwane during the 10th Pan African Conference on illicit Financial Flows and Taxations implored stakeholders present to ensure that the fight for tax justice is up scaled through invigorated collaborative efforts on equal footing without leaving anyone behind.
He noted that political support needs to be coordinated across countries to ensure that tax regimes race to the middle and not the bottom given the more global nature of markets and business operation.
In a speech read on his behalf by Ministry Permanent Secretary Trevor Kaunda, Dr. Musokotwane noted that “important tax issues on double taxation, information sharing and enforcement, offshore financial centres and effective regional tax rules require some level of enhanced global and regional cooperation.”
Further, Center for Trade Policy and Development (CTPD) observed that it will be very important for African countries to have one voice on issues of Frameworks that govern taxation and illicit financial flow.
Speaking in an interview with Money FM News on Sidelines of the 10th Pan African Conference on illicit Financial Flows and Taxation, Boyd Muleya said it is critical to have a conversation that promotes Pan Africanism on problems that Zambia is facing going forward by collaborating with other partners across Africa.
Mr Muleya said this is because the countries share similar problems yet they have various solutions.
He pointed at the importance of understanding how these solution work for other countries.
“In short we are saying as Center for Trade Policy and development it will be good to have a conversation that promotes Pan Africanism going forward, this is very critical to also unlock some of the potential because we grapple with the similar challenges,” Mr Muleya stated.
“For example most of the frameworks that govern our enhancement of Taxation let us says for example the Organisation for Economic Cooperation and Development (OECD) is actually a case of the western world. But the question is together Zambia and Africa, where do we stand in our power of in proposition of such conversations?” he added.
The CTPD Head of Research noted it is for this reason that PAN African conferences on Illicit Financial flaws and Taxation play a significant role indicating that whilst working with partners Tax Justine Network Africa as well as the African Tax Administration Forum feel that an African solution which is concrete which informs different experiences from across the continent, will be critical in finding that solution.
In another interview, Tax Justice Network Africa(TJNA) told Money FM News that their report indicates that Africa as a continent is losing US$88 Billion Annually through Illicit Financial Flows and Tax Injustices.
“We have done a lot of work on illicit financial flows and tax injustices in Africa and our report indicates that Africa as a continent is losing US$88 Billion Annually through Illicit Financial Flows and Tax Injustices,” he noted
TJNA Policy Officer Ishmael Zulu noted central to the fight in curbing and sealing loopholes in the Tax systems are members of parliament (MPs) because of the role they play as legislators.
Mr. Zulu noted on recognition of roles MPs, TJNA developed a toolkit for members of parliament which highlights and brings to light key information on what illicit financial flows and Tax Injustice are and roles they can play in assisting the fight in curbing the vices.
He stated that “once we seal these loopholes in our tax system and we are able to adequately raise resources, it then provides for money that we need to provide for education, health or social protection spending and it opens us up our economies to meet our Sustainable Development Goals and achieve sustainable development.”