Stakeholders push for adoption of UN Tax Convention to boost revenue collection
A section of tax stakeholders attend the breakfast meeting organised by the Policy Forum, the Norwegian Church Aid, and the Interfaith Standing Committee on Economic Justice and Integrity of Creation (ISCEJIC) themed: The UN Tax Convention: Africa's Role in Advancing Fair Tax Policies and Promoting Tax Justice. The event took place in Dar es Salaam on Friday, November 29, 2024. PHOTO|COURTERSY
What you need to know:
- The call was made on Friday, November 29, 2024, during a breakfast debate organised by the Policy Forum in collaboration with the Norwegian Church Aid and the Interfaith Standing Committee on Economic Justice and Integrity of Creation (ISCEJIC).
Dar es Salaam. Tax stakeholders have urged the Tanzanian government to adopt the UN Tax Convention to increase revenue collection and plug tax evasion loopholes.
The call was made on Friday, November 29, 2024, during a breakfast debate organised by the Policy Forum in collaboration with the Norwegian Church Aid and the Interfaith Standing Committee on Economic Justice and Integrity of Creation (ISCEJIC).
Breakfast meeting participants believe the UN Tax Convention could significantly boost Tanzania’s tax collection ability, address the challenge of illicit financial flows (IFFs), and improve public service delivery.
Saint Augustine University of Tanzania (Saut) lecturer Norah Kawiche highlighted the challenges posed by an interconnected global economy.
"Large corporations often shift untaxed profits through illicit financial flows, making it difficult for Tanzania to collect taxes due to legal limitations," she said.
Ms Kawiche added that adopting the UN Tax Convention would enable Tanzania to collaborate with other countries in exchanging crucial information on tax evasion and avoidance.
"It would also strengthen our capacity to recover taxes that have already been moved out of the country," she explained.
Despite Tanzania’s robust domestic tax laws, Ms Kawiche emphasised the importance of international cooperation to address funds shifted abroad.
While bilateral agreements have been beneficial, Tanzania has signed tax treaties with only nine countries, compared to South Africa's 80.
"The UN Tax Convention would grant us access to over 100 countries, promoting greater cooperation and information sharing," she suggested.
The ISCEJIC chairman, Bishop Nelson Kisare, echoed these sentiments, stressing the need for the UN Tax Convention to enhance Tanzania’s tax collection efforts.
