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Patrick Chitumba and Roberta Katunga in Victoria Falls
AFRICAN countries should define new taxation policies and practices so that they benefit from taxation of their natural resources, Commissioner General of the Zimbabwe Revenue Authority Mr Gershem Pasi said. Welcoming delegates to the International Conference on Tax in Victoria Falls yesterday, Mr Pasi said taxation on natural resources was complex because African countries had allowed other people in the developed world to make the rules.
“The taxation of natural resources which is punctuated by a myriad of challenges is a thorny issue which has to be dealt with dexterously for the development of our continent.
“We have allowed other people to make rules and we follow. Why don’t we define rules for Africa? Then it will not be complex and we will further our own agenda because right now it is difficult to understand these tax regimes put by the developed countries as they worked on protecting their interests while they exploit our natural resources,” he said.
Mr Pasi said Africans should throw away complex taxation policies such as the transfer pricing regimes which were difficult to comprehend for most people.
“We are enforcing tax regimes on tax payers which we do not even understand and we expect them to comply. We need simple rules so that we benefit from our natural resources. Africa is too rich to be poor. We need to explore how Africa’s abundant natural resources can be harnessed.”
Speaking at the same function, African Tax Administration Forum (ATAF) executive secretary Mr Logan Wort said it was important to share African experiences in natural resource taxation and all other taxes as well as be heard in the decision making processes.
“It is time we develop models for Africa where we consider African conditions and develop African solutions.
“When the world develops new rules on taxation, inspectors without borders, automatic exchange of information and other standards, we in Africa must make sure we participate to make our voices heard,” said Mr Wort.
He said African tax authorities had a mandate of mobilising domestic revenue in order to eradicate the ever increasing income gap between rich and poor on the continent.
“The responsibility to collect taxes that are due to fund the development for our people cannot be taken lightly.
“Upon our shoulders rest the responsibility to build a tax and compliance culture on the African continent that will see us maximise the benefits of our fast growing economies,” said Mr Wort.
He said such revenues should reduce poverty, high indebtedness and aid dependence.
The ATAF conference seeks to come up with solutions on how best the continent can benefit and explore its natural resources in order to improve the livelihoods of people.
Delegates from 36 African countries are attending the conference.
Finance Minister Patrick Chinamasa is expected to officially open the event tomorrow.
Online Reporter