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Wednesday, 06 October 2010

Tax Could be The Way Out of Aid Dependence

Many African countries struggle with debt and finding money for national budgets because they fail to recognise taxation as a sustainable source of funding. Moreover, multinational companies are too easily given tax breaks while siphoning off money through illegal tax evasion. Taxation plays an important role in determining the distribution of benefits to citizens. It also acts as a connection between state and citizenry.  But, "there is no mobilisation of national resources for national development in African countries, which is why we are seeing agitation among ordinary people", Percy Makombe, programme manager at the Cape Town-based Economic Justice Network (EJN), told IPS. EJN is a project of the Fellowship of Christian Councils of Southern Africa (Foccisa).  Attention to the tax issue has generally been lacking. "History proves that no country will march out of poverty through aid but effective local resource mobilisation can aid development of African countries," declares Alvin Mosioma, coordinator of the Tax Justice Network - Africa based in Nairobi.

Source: Inter Press News Service Agency