Tax havens 'll bring chaos to Nigeria, Africa, Western World - NLC
BENEDICT ODINAKA writing for ODOGWU MEDIA.
As part of its effort towards its campaign against Illicit Financial Flows (IFF) from Africa to the Western World, the Nigeria Labour Congress (NLC) has said that tax evasion and avoidance would eventually bring chaos and more hardship to Nigeria, other African countries and to the Western world in the nearest future.
Championing tax justice national campaign in Nigeria, NLC at a one day media awareness and sensitisation organised for Labour Reporters in Abuja, added that the consequences of the policies of granting tax havens to foreign investors in Nigeria and other African countries would result to among other things, a wild spread outbreak of immigration crisis to the Western world.
Demanding that Western and African governments should work together to curb illicit financial flows from Africa to the Western world for the common of everyone, NLC said that Nigeria government in particular should “aggressively pursue the creation and sustainability of a progressive tax base as a sure and steady way of domestic resources mobilisation.”
Explaining that the action if pursued would pave way for “mass creation of jobs that will provide the opportunity for the expansion of the country’s tax base”, NLC further said “By this, our government can set the agenda for improving public services delivery and sustainable development. Progressive tax justice policies mean African countries can be financially self-sufficient and free from aid dependency.”
Re-emphasising the findings of African Union High Level Panel on Illicit Financial Flows, headed by former South African President Thabo Mbeki, that over $60billion is lost every year, NLC said that it has been established that as much as two-third of the said amount is lost due to manipulation of commercial transactions rather than criminal activity and corruption.
Furthermore, the Labour union said that tax injustice is simply perpetuated through tax evasion and tax avoidance (i.c using tax havens to shelter profits that would otherwise be taxed by African countries) and that it is costing the continent up to $39 billion annually.
Calling Nigeria and other African governments to as a matter conscious effort, “commit to genuine and effective implementation of the recommendations of the AU report on illicit financial flows”, “Nigeria and African governments must ensure that companies doing business pay their fair share of tax on the economic activities that takes place within our jurisdiction. Whether companies are extracting minerals, setting up factories, or selling goods or services, they should pay tax. This also means addressing race-to-the-bottom tax incentives and tax competition policies on a regional basis.
“We urge governments and leaders to strictly limit the use of discretionary incentives and provide transparent explanations and parliamentary reviews of incentives when they are used. Importantly, Nigeria government must resist the temptations and advices to undertake tax policies that will pass tax payment burdens on the poor.” NLC said
TAX HAVENS WILL BRING CHAOS TO NIGERIA,AFRICA,WESTERN WORLD.SAYS NLC.
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Friday, September 29, 2017
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