ADDIS ABABA, June 1 (Xinhua) -- The United Nations Economic Commission for Africa (UNECA) has called for an inclusive international tax system and an overhaul of the global financial system as part of a global deal to secure the Sustainable Development Goals (SDGs).
An inclusive international tax system would enable African countries to focus their resources on sustainable and inclusive development, a UNECA statement quoted Acting Executive Secretary Antonio Pedro during the meeting of the Second Specialized Technical Committee on Finance, Monetary Affairs, Economic Planning, and Integration of African Union whose Sub-Committee on Tax and Illicit Financial Flows is in session.
Pedro highlighted the challenges facing African countries in generating domestic resources for economic, social, and environmental investment. He stressed the need to raise additional resources as African countries face multifaceted challenges, adding that a double-digit growth rate is needed to rescue the SDGs and accelerate the implementation of Africa's continental Agenda 2063.
He noted that the international financial architecture remains grossly inadequate for low-income countries, especially in Africa, to respond to the imperatives of the SDGs and transform Africa's economies.
Pedro said multilateral financing is increasingly becoming inadequate and unfavorable, and international private financing is equally challenging and costly owing to poor credit ratings stemming from structural issues and systematic bias.
Pedro further underscored the importance of an inclusive international tax system to ensure the taxing rights of African countries and the need to formulate an African position on the UN Tax Convention.
"With this backing, member states will be able to begin inter-governmental discussions on ambitious reforms to the global governance structure to curb global tax abuse by multinational corporations," he said.
