KIGALI, (Xinhua) --
Experts on Monday said that tax avoidance and
illicit financial flows are hindering efforts of African
governments to mobilize domestic resources, while calling for
sustainable ways to boost revenue collection.
They were speaking
at a high-level tax policy dialogue of the 2nd
African Tax Administration Forum (ATAF) that opened on Monday in
Rwandan capital Kigali.
“Taxes are key to
financing development and increasing investment, however, tax
evasion and illicit financial flows are becoming a challenge to
domestic tax revenue collection among African economies,” said
Logan Wort, executive secretary of ATAF.
need to strengthen their domestic tax legislation and tax
administration capacity if they are to address tax evasion and
illicit financial flows, he said.
The Africa Union
estimates that Africa loses 50 billion U.S. dollars a year in
illicit financial flows that find their way to developed
Logan noted the
level of African resources lost through illicit financial flows
is higher than the official aid received by African countries.
According to him,
ATAF has spearheaded the work of representing African tax
administrations in the global tax organizations to ensure
effectiveness in tax revenue collection.
According to Alvin
Mosioma, executive director of Tax Justice Network-Africa,
eliminating all illicit financial flows and fraudulent schemes
aimed at avoiding tax payments requires extensive strengthening
of tax legislation in both direct and indirect taxes.
will need to work together and share best practices to achieve
this highly ambitious goal, Mosioma added.
There is an urgent
need for African countries to develop coherent tax policies that
address tax evasion and avoidance while creating a more certain
and transparent investment climate, said Doris Akol,
commissioner general of Uganda Revenue Authority.
“We need to work
together to develop strong legislations and systems that will
enable revenue authorities and other implementing agencies to
detect and deter entities involved in tax avoidance and illicit
financial flows,” she said.
minister Uzziel Ndagijimana said for Africa to achieve
Sustainable Development Goals, a coordinated response to resolve
taxation issues through robust domestic revenue mobilization is
Under the African
Union’s Agenda 2063, Africa is committed to strengthening
domestic resource mobilization, building continental capital
markets and financial institutions, and reversing the illicit
flows of capital from the continent, he said.