Social benefits make taxes attractive

Madam Daniela Kuzu, Resident Director, Friedrich Ebert Stiftung (FES), has called for the institutionalisation of social benefits for the poor and vulnerable as a veritable justification for taxation.

According to her, higher and broad-based taxes in every society could only be successful if the people could immediately feel and see its benefits in the society.

Madam Kusu was contributing to discussions at a three-day workshop on tax justice organised by the Public Service International in collaboration with the Public Service Workers Union and funded by the FES.

About 50 trade union representatives drawn from Africa are in Tema to discuss and select appropriate tools for trade union intervention in tax justice campaigns.

The workshop would also raise awareness on the issues, train and build the capacity of participants on tax justice campaign with the view of placing tax justice on the agenda of trade unions in Ghana and Africa.

On the fleecing of African countries by multi-nationals, some African politicians and businessmen and women through tax incentives, she said the first motive of every capitalist is to make money and how they make it does not really matter to them therefore.

Madam Kuzu said it is therefore incumbent on African leaders to think through measures that would attract foreign investment and at the same time protect the people and resources from undue exploitation.

She called for the strict enforcement of tax laws especially on big businesses who have the financial and political muscle to outwit the system.

Mr Alvin Mosioma, Executive Director, Tax Justice Network-Africa, said money laundering and the rampant capital flight are usually tele-guided by multi nationals with the support of African collaborators.

According to him, a generous tax regime is never the most important reason for investors to choose their destination so the use of the strategy is a ploy to exploit.

Dr Yaw Baah, Deputy Secretary-General, Trade Union Congress, said taxes are the most effective tool for national development and poverty alleviation and called on trade unions to rise and ensure the judicious use of revenue.

He expressed dissatisfaction about the manner at which African countries are moving gradually from the progressive taxation to regressive taxation which is perpetuating the inequality and poverty on the continent.