OECD urges G7 leaders to enhance support for African tax policy reforms
The Organization for Economic Cooperation and Development (OECD) has called upon G7 finance ministers and central bank governors meeting to strengthen capacity building and technical assistance for African nations engaged in tax policy reforms. The OECD’s report, requested by the G7’s Japanese presidency, emphasizes the significance of the global tax deal for African economies and their instrumental role in shaping the tax policy agenda.
The recommendations include broader discussions with African countries on various tax policy matters, such as value-added tax on digital trade, digitalization of tax administration, tax transparency initiatives, and the taxation of the informal sector. The OECD also suggests increasing support from development partners like the African Tax Administration Forum and Tax Inspectors Without Borders (TIWB) to enhance tax capacity building efforts in Africa.
Furthermore, the report underscores the necessity of greater support for the rollout of the 15% global minimum tax, a pivotal component of the OECD’s tax agreement reached by over 130 countries in 2021. This call aims to strengthen Africa’s position in the global tax landscape and foster sustainable economic growth.
Source: oecd
