ActionAid supports Federal Government’s reluctance to sign onto global tax reform deal
Written by COMFORT 95.1FM on July 17, 2021
Action Aid Nigeria has thrown their weight behind the reluctance of the Federal Republic of Nigeria to sign onto the Organisation for Economic Co-operation and Development, OECD global tax reform deal.
According to a statement signed by Communications Coordinator, Lola Ayanda, though the organization applauds that the OECD recognizes the need to better tax the digital economy and the fact that big tech companies need to be making bigger tax contributions, ActionAid Nigeria is displeased with the negotiation carried out by rich countries for their benefit.
In the opinion of the organization, it is fundamentally unfair to ask countries in the global south to trade-off their unilateral taxation of the digital economy, in lieu of implementing a deal they were not part of negotiating, coupled with the fact that they will only marginally benefit from it.
Also Action Aid Nigeria is not happy with the fact that this new deal will take effect earliest in 2023 and cannot be reviewed until earliest 2030 is not good enough as revenues are desperately needed in the global south to tackle the challenges posed by the covid19 pandemic and to fight poverty and inequality hence companies operating within the digital economy need to be compelled to pay their fair share of taxes.
The organization is therefore calling on the federal Government to maintain unilateral measures to tax the digital economy through the Finance Act of 2019 and Significant Economic Presence Rule of 2020 until an acceptable and beneficial Global Tax deal is met.
Nigeria has also been advised to restrain from signing Tax Treaties indiscriminately as they may have same effects as the proposed OECD tax deal.