TaxJusticeAfrica

Thursday, April 10, 2008

Ivory Coast: Protests force Ivory Coast tax cuts

10th April 2008 (Aljazeera.net)
Ivory Coast has slashed the taxes on imported staple foods after two days of violent protests in the commercial capital Abidjan over rising prices.

Kenya: Taxation the only solution to inequality

According to old taxation theories, the most basic functions of a State are to protect the lives and property of their citizens from internal and external aggressors.
Naturally, the State requires resources to do this, and the most equitable way of getting the resources would be to tax people in accordance with the kind of protection they require.

Thursday, April 3, 2008

DRC: Controversial EIB-backed mining project in the Congo to face contract

03 April 2008 (Bicusa.org)
DRC mining contract commission to push for a greater share in the Tenke Fungurume mining concession, one of the largest copper-cobalt deposits in the world. Critics charge that EIB's investment in the highly contested project before the conclusion of the contract review was "irresponsible

Wednesday, April 2, 2008

Kenya: UK probe fails to unravel Mobitelea

An investigation by the British government's Serious Fraud Office into the complex issue of Mobitelea's share of the Kenyan mobile phone giant Safaricom has not resolved the matter, it has been revealed.

ABOUT TAX JUSTICE

Increasing foreign aid to Africa is often viewed as the panacea to address the poverty facing the continent. While the role played by international aid can not ignored there is an important element which is often ignored in this debate: the issue of the massive resource outflow from the continent.

The African Union estimates that up to US$ 148 billion is taken out of the continent annually because of corruption. These amounts exceed the current aid flow by a significant margin. It is indeed estimated that for every dollar that flows into the continent in terms of foreign aid and loans, there are 8 dollars flowing out through corrupt practices.

Issues around the massive resource outflow and its effects on the fledging economies of Africa have not been accorded due attention. The illicit capital flight and associated tax evasion , tax competition, transfer mis-pricing, revenue losses due to import tariff reduction brought by market liberalization, and other related aggressive tax avoidance malpractices by both MNCs and other rich elites in Africa have all significantly led to accelerated capital flows out of Africa.

The debate on economic development of the continent and the reduction of poverty would be missing a very important component if factors that encourage resource outflow, hamper domestic resource mobilization and encourage reliance on external financing for development are not addressed. There is need to raise the awareness among different actors of the impact these outflows have in hampering economic growth in Africa.