peter
Business Editor
WHILE Africa desperately needs external investments to grow its economy, the African Tax Administrators Forum (ATAF) says foreign investors must be actively encouraged not to seek incentives such as tax holidays when investing in the continent, “as these erode the tax base.”
Experts have fiercely criticised the granting of tax holidays outside adequate due diligence saying the window has been taken advantage of by some insincere investors, who go on exploit the continent and disappear before host economies realise benefits of their presence.
ATAF executive secretary, Mr Logan Wort, has called for African voices to be listened to and given support in the standard-setting processes on global tax rules to ensure the continent gets a fair share of the global economy proceeds.
“The inclusive framework should listen to the African voice and allow for information to be available that would help tax (multi-national enterprises) MNEs in Africa,” he said in a latest statement issued by the regional tax body.
Mr Wort’s remarks come on the background of a new three-year 2.1 million Euro agreement that has been signed by ATAF with Finland, leading to the launch of the Taxation for Development Action Programme early this month.
The intervention is aligned to ATAF’s objectives of mobilising domestic resources for development, fair taxation and championing Africa’s interests in international negotiations on tax matters.
Online Reporter