Historic Win for African Nations as UN Votes for New Tax Convention

Nigeria spearheaded a decisive victory for the UN’s Africa bloc on November 22, securing a resolution advocating for the establishment of a new UN tax convention. This move is a response to the tough time tax authorities have collecting money on huge profits made by multinational companies.

The vote, which saw an overwhelming majority in favour, marked a turning point, with 125 nations supporting the resolution. Notable supporters included economic powerhouses China and Russia, underscoring the global significance of the issue. Additionally, 51 out of the 54 UN’s African member states voted in favour, with Mauritius, Somalia, and São Tomé and Príncipe abstaining from the vote.

The adoption of the resolution signals a collective effort by developing nations to address the longstanding frustration stemming from the inequitable distribution of tax revenues. The move reflects a desire to rectify the current system, where multinational corporations often exploit loopholes, leading to meagre contributions to the coffers of developing nations.

The proposed UN tax convention aims to establish a fair and transparent framework for taxing multinational corporations, providing a level playing field for nations with varying economic strengths. This development is expected to empower developing countries, allowing them to assert greater control over their financial destinies and reduce dependence on wealthier nations.