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Members of Parliament (MPs) in South Africa have committed to pushing for legislative tax policies and equitable tax frameworks to stimulate development in South Africa.
These commitments were made during a two-day capacity-building session held in Cape Town, South Africa, from the 15th to the 16th of August 2023. Representatives from civil society organisations and the MPs from South Africa agreed that they must work together to push for tax negotiations and reforms.
The training was organised by African Parliamentary Network on Illicit Financial Flows and Taxation (APNIFFT), Tax Justice Network Africa (TJNA) and Alternative Information and Development Centre (AIDC) and it aimed to strengthen the capacities of the parliamentarians to effectively address and bring about legislative interventions to curb illicit financial flows (IFFs) and promote Domestic Resource Mobilisation (DRM).
In her opening remarks, APNIFFT Steering Committee Chair Dr Khanyisile Tshabalala noted that Southern Africa has been the hardest to get APNIFFT off the ground and added that the training was the right platform to bring together MPs in the country to deliberate on important tax issues and chart way forward towards the future of the country.
“Southern Africa has been hardest to get APNIFFT off the ground, which is troubling because Southern Africa is the bastion of illicit financial flows (IFFs). Generally, IFFs and tax justice is a unitary topic while socialist liberation is a divisive topic, but tax justice is a unitary topic which can help us tackle this issue in our country." She added.
Hon. Mxolisi Makhubu, a member of APNIFFT South Africa Caucus, stated that members of parliament and civil society organisations (CSOs) need to amplify their voices to ensure tax reforms are effected and that recourse and measures are put in place to bring to book the violators of tax laws in South Africa. “We need to ensure that we as the leaders put measures in place to ensure that taxes collected in the Republic of South Africa are channelled to the right developmental spaces.”
Hon. Mxolisi emphasised the importance of ensuring that Africa’s resources are utilised for the benefit of the continent. His views summarised the united commitment of APNIFFT to curb IFFs and advance equitable taxation, echoing the network's collective determination to drive transformative change across the region.
The training provided a platform for knowledge exchange, capacity-building, networking, and fostering a shared responsibility towards curbing IFFs.
Following the two-day training session, the members of parliament reached a consensus on a series of significant commitments aimed at fortifying South Africa's stand against Illicit Financial Flows (IFFs):
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A unanimous commitment to bolstering oversight mechanisms to counter corruption and IFFs within South Africa.
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Incorporate dedicated segments on IFFs and Base Erosion and Profit Shifting (BEPS) within the political programs of various parties.
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Engage a broader spectrum of stakeholders in discussions concerning IFFs.
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An upcoming parliamentary motion will be introduced to take concrete steps towards curbing IFFs and rectifying tax abuses.
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Leveraging their influence, the members of parliament committed to raising awareness about IFFs through thought leadership initiatives.
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Recognising the need for public understanding, efforts will be directed at making IFFs relatable to citizens through civic education initiatives.
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Forge stronger collaborations with counterparts from other countries in Africa to advocate for alternatives to the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) action plan.
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Develop a comprehensive fact sheet on IFFs and BEPS to equip the MPs.
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Establishment of an intragovernmental panel to effectively combat the challenges posed by IFFs and BEPS.
During the session's closing, Mr Rodgers Kidiya, APNIFFT coordinator, emphasised the importance of translating the acquired knowledge into practical, impactful measures, reflecting the commitment of APNIFFT to effect tangible change in South Africa.
For more details on the training and our participation, please contact ebirech@taxjusticeafrica.net