PALU Panelists Advocate for Africa’s Tax Sovereignty Amid Global Changes
Addis ababa: At the 14th annual Pan African Lawyers Union (PALU) conference, panelists emphasized the urgent need for Africa to assert its fiscal sovereignty through the design of self-crafted tax treaties. The conference, which began yesterday in Ethiopia’s capital, has drawn attention to the evolving international tax landscape and Africa’s position within it.
According to Ethiopian News Agency, panelist Lyla Latif called on the African Group at the United Nations to fundamentally rethink its tax system approach. Latif highlighted the necessity of moving away from colonial-era tax structures and adopting a system that embodies Africa’s independence and intellectual capabilities. “Africa Group at UN, let’s have a new way in rethinking how we are going to conceptualize our tax system. We want to break away from historical colonial past and say now Africa is independent, Africa can sit on the table, Africa has great minds and we can now decide for ourselves the tax treaties that are going to guide our fiscal
sovereignty,” Latif stated.
Latif further noted that the upcoming UN Framework Convention on Tax would play a crucial role in redefining the international tax system, with the convention expected to gain more binding force this year. She pointed out that discussions on the convention are set to continue until 2025, providing a platform for drafting relevant terms of reference that reflect the specific needs and circumstances of African nations.
Additionally, the emphasis was placed on the adoption of tax rules favoring source-based taxation, which would enable African countries to retain more revenue. Latif stressed, “Basically, we need to come up with stronger tax rules that are going to result in more source-based taxation rather than residents tax rate.”
Supporting Latif’s views, panelist Lydiah Mose underscored the importance of developing long-term, sustainable solutions tailored to Africa’s economic realities. Mose advocated for enhanced regional collaboration to ensure that African voices are influe
ntial in the global arena, particularly in challenging and reshaping the existing tax rules that have predominantly been crafted by organizations like the OECD with developed countries in mind.