SECTOR INSIGHT 03/04/2023
FIRS Renews Plea for Fair International Tax Practices
The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Muhammad Nami, yesterday challenged the global tax community to forge an inclusive, equitable, fair and universally beneficial international tax system towards the attainment of the 2030 Sustainable Development Goals (SDGs).
Making the call on behalf of the country, Mr. Muhammad Nami, the Executive Chairman of the Federal Inland Revenue Service (FIRS) stated this while speaking at the Economic and Social Council (ECOSOC) Special Meeting on International Cooperation in Tax Matters at the UN United Headquarters, New York.He expressed concerns of the Nigerian delegation about the global minimum tax as put forward by the OECD – Inclusive Framework.
The FIRS boss expressed reservations over the low rate and the way the framework was negotiated to benefit the home countries of multinationals.He said, “My delegation is concerned about the global minimum tax because of its low rate and the way it was negotiated to benefit the home countries of multinationals, which are mostly in developed countries.
He recommended a UN instrument on tax cooperation to build on that work that had already been done in a way that guarantees fairness and equity. He further stressed the need for an, “enforcement mechanisms for a binding multilateral tax convention, noting the challenges that developing and developed countries have experienced with investment treaty arbitration.”Nami also pointed out that the capacity of countries to attain the 2030 Sustainable Development Goals were hinged on having the requisite funding in delivering critical public services towards the SDGs.
He harped on the importance of enhancing domestic resource mobilisation among member states to address their economic challenges.Nami said, “The promotion of inclusive international tax cooperation remains a critical subject in the attainment of the 2030 Sustainable Development Goals (SDGs).
“Today a global taxation regime under the UN is urgently needed to enable states effectively mobilise domestic revenues to address the multiple economic and other crises impacting our efforts in the achievement of the 2030 SDGs.”In a statement issued by his Special Assistant on Media and Communication, Johannes Oluwatobi Wojuola, Nami said,“Domestic public resource mobilisation is critical to this effort because of its vital role in delivering critical public services and advancing even progress towards the sustainable development agenda.
“Developing countries are taking seriously the challenge of financing sustainable development. My delegation underscores the importance of enhancing domestic resource mobilisation, good governance and investment in our common African goal embodied in the Agenda 2063, and in the global goals spelled out in the 2030 Agenda.”
He, however, commended African countries for strengthening their participation in international tax cooperation efforts, as well as the strides they have made in closing loopholes and countering base erosion and profit shifting.Nonetheless, he noted that while much good work had been done, much more remained to be accomplished towards a fully inclusive process, both domestically and internationally and ensuring that all taxpayers are making their fair contribution.
