AU Commission, ATAF collaborate on tax mobilisation matters

Business Writer

THE African Union Commission (AUC) and the African Tax Administration Forum (ATAF) have extended their cooperation by officially signing a Memorandum of Understanding (MoU), which is aimed at amplifying the continent’s voice on global tax engagements.

Commissioner for Economic Development, Trade, Industry, Mining at the AUC, Ambassador Albert Muchanga, and ATAF executive secretary Mr Logan Wort, signed the MoU during the 2nd meeting of the specialised technical committee (STC) on finance, monetary affairs, economic planning and integration sub-committee on tax at the AU Headquarters on Wednesday.

The signing of the MoU marks a significant step in strengthening the cooperation on tax policy and improving tax administration – all aimed at mobilising domestic resources in Africa and achieving Agenda 2063. In addition, the two organisations will also work on rolling out the work plans of strategies to combat illicit financial flows (IFFs) and bringing the African voice on tax matters to global discussions.

The MoU has also paved the way for the ATAF desk at the African Union Commission, housed in the Commission for Economic Development, Trade, Industry and Mining. “I am delighted that we will be in a position to continue the work of combatting IFFs, increasing revenue collection for achieving Agenda 2063, and building effective revenue systems across the continent,” said Mr Wort.

“This is a momentous occasion in bringing tax issues to a political level while providing practical solutions tailored for African countries.”

Equally, Amb Muchanga said the objectives of revenue mobilisation on the continent would be realized with a coordinated effort. As a matter of urgency, ATAF and the AUC will be convening a meeting to discuss the going global tax discussions to inform and update member states on the evolution of the UN Tax Convention and the upcoming OECD Inclusive Framework Meeting in July 2023.

The ATAF delegation is participating in a series of sessions during a three-day meeting of experts from ministries of finance and tax administrations under the Specialised Technical Committee on Monetary Affairs, Finance, Planning and Integration of the African Union.

The meeting will provide experts from the continent the opportunity to input into issues such as domestic minimum top-up tax, cross-border VAT and e-commerce, and the United Nations Resolution on a Convention for International Tax Cooperation.

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