Why an overhaul of the international tax system is so important

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Why an overhaul of the international tax system is so important
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There is an urgent need for developing countries to participate actively in the drafting of new standards

Flooded homes are seen after Cyclone Idai in Buzi district outside Beira, Mozambique, March 21, 2019. Picture: REUTERS / SIPHIWE SIBEKO

For researchers, there is no doubt that the alternation of cyclonic episodes and droughts that has hit the region in recent years is directly linked to the temperature variations resulting from climate change. The irony is that Mozambique and its neighboring countries produce only a tiny fraction of the world's carbon dioxide emissions. Moreover, Africa is the continent least responsible for global warming: barely 3.

In addition, natural disasters exacerbate poverty and inequality, and fuel conflict. Extreme poverty continues to increase in sub-Saharan Africa, unlike in all other regions of the world. If nothing changes, the region could account for 90% of people living on less than $1.90 a day by 2050, the World Bank warns. Public infrastructure is unable to meet the growing demand, and disaster response mechanisms are inadequate. Kinshasa's 13.

All over the world people are shocked by tax scandals exposed by government investigations and whistleblowers. In the US, for example, a recent report revealed that 60 of the country's top 500 most profitable companies, including Amazon, Netflix and General Motors, paid no taxes in 2018, despite a cumulative profit of $79bn. The impact on public finances is even more worrying in Africa, where corporate taxes represent 15.3% of government revenues, compared to just 9% in rich countries.

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