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June 26, 2013 8:01 pm
From Dr Mthuli Ncube.
Sir, Your report “Tanzania in a bind balancing exemptions against revenue” (June 13), on Tanzania’s frustrations with, and efforts in dealing with, tax evasion in the mining sector, was aptly captured in David Cameron’s “three T’s” speech at the recent G8 meeting.
Illicit financial outflows from Africa of about $50bn a year cancel out the current foreign direct investment inflows: a staggering $1.4tn, or 70 per cent of Africa’s gross domestic product, in the last 30 years. These illicit outflows are largely driven by transfer pricing, corruption, tax evasion linked mainly to mining, and unfair contracts and so on. This leakage can be stopped only by developed countries doing their part for transparency, and by African countries building capacity for tax collection and transparency in contracts.
It takes two to tango, and both sides have the potential to be good dancers!
Mthuli Ncube, African Development Bank Group, Tunis, Tunisia
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