G20 Summit: Tinubu calls for reform of current global tax system
…Says it hinders self reliance of developing nations
President Bola Tinubu has called for the reform of the current global taxation system.
Speaking on Monday at the 19th G20 Leaders Summit opening session in Rio de Janeiro, Brazil, President Tinubu noted that, “The world faces various challenges, including extreme poverty, inequality, climate change, terrorism, and global conflicts.”
“These issues are exacerbated by long standing inequities in the global governance system, which have led to unsustainable sovereign debt and distortions in access to capital markets, trade imbalances, unfair representations and hindered development in the Global South.”
“It is our responsibility to find pragmatic solutions to fix these imbalances.
“Particularly pressing is global taxation, which profoundly impacts developing countries.
“The current international tax system, largely shaped by the interests of more affluent nations, often leaves developing countries at a disadvantage, especially in taxing digital economies.
“This systemic imbalance has led to significant revenue losses, hampering our efforts towards sustainable development and economic self-reliance,” He said.
President Tinubu highlighted that Nigeria, alongside other African Group member states, championed a historic initiative at the United Nations: calling for a framework Convention on Tax to establish a more equitable and inclusive global tax system.
He urged the G20 to heed the call by countries, especially those of the global South, to reform the international financial architecture.
“Multilateral institutions must be revamped to bridge the gap between the Global North and South. This is the path for the future and one the G20 must champion. Nigeria is committed to being part of that future through active participation in the G20 and our steadfast support for achieving SDG 2030 targets,” the President added.
President Tinubu also emphasised the urgent need for the United Nations Security Council reform to ensure its continued relevance in global interventions.
He reiterated Nigeria’s readiness and capability to represent Africa within this elite.
He called on the G20 to champion this noble ideal, having admitted the African Union as a group member.
Tinubu said, ”The Security Council should expand its permanent and non-permanent member categories to reflect the world’s diversity and plurality. Africa deserves priority in this.”
“The Security Council should expand its permanent and non-permanent member categories to reflect the world’s diversity and plurality better.”
“Africa deserves priority in this process, and two permanent seats should be allocated to it with equal rights and responsibilities. Nigeria stands ready and willing to serve as a representative of Africa in this capacity.”
