‘Significant revenue losses’ — Tinubu calls for global tax system review

President Bola Tinubu has called for a review of the global taxation system.

The president made the call at the third south summit of the Group of 77 and China, which opened on Sunday in Kampala, Uganda.

The summit hosted many heads of state and government as well as heads of international organisations, including United Nations Secretary-General Antonio Guterres

Global tax refers to a system of taxation that applies across national borders, aiming to create a fair and efficient way to raise revenue from multinational corporations and individuals with significant international income.

Tinubu said redressing the imbalance in the international tax regime has become imperative.

The president was represented by Atiku Bagudu, minister of budget and economic planning, according to a statement by Folasade Boriowo, the ministry’s director of information of the ministry.

Speaking at the summit, themed, ‘Leaving No One Behind’, Tinubu said the issue of global taxation is pressing because it impacts developing countries.

“The current international tax systems, largely shaped by the interests of more affluent nations, often leave developing countries at a disadvantage, especially in taxing digital economies,” he said.

“This systemic imbalance has led to significant revenue losses, hampering our efforts towards sustainable development and economic self-reliance.”

In response to this, according to the statement, Nigeria, alongside other member states of the African Group, championed a historic initiative at the United Nations, calling for a framework convention on tax. 

This resolution, according to the president, marks a pivotal step towards establishing a more equitable and inclusive global tax system. 

Tinubu also thanked all the countries that supported the global tax review initiative.

He said their solidarity reflects “our shared commitment to rectifying the inequities of the current tax system and fostering a more just economic order.”

Also, the politician said the country is committed to South-South collaboration, stressing the significance of Triangular cooperation. 

“This partnership model, involving developing countries, developed nations and international organisations, offers a comprehensive approach to address global challenges,” he added. 

“Such cooperation enriches Nigeria’s strategies for sustainable development, ensuring inclusivity and maximising the impact of our collective efforts.”

Reaffirming Nigeria’s commitment towards multilateralism and the objectives of the Bandung principles, Tinubu said as G77 looks towards the future, the organisation should envision a movement that is responsive to the needs and aspirations of member states.