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Article

7 Jul 2015

Author:
Martha Khonje, Guardian (UK)

Malawi: Stopping tax avoidance could help govt. invest in health & education, says journalist

"'Corporate tax deals are robbing poor countries of teachers and nurses'", 2 Jul 2015

According to recent figures from the World Bank, my country Malawi is the poorest country in the world…The country desperately requires investment in public services, including health and education programmes…One of the solutions to this problem is to increase government income through taxation…In theory, by allowing large companies to mine these resources and then tax those operations, our government could raise millions of dollars of revenue. But this can only happen once the twin problems of tax avoidance and unnecessary tax incentives are solved…[W]e want the Malawian government and governments in other developing countries not to offer…massive tax break to companies. We also want global tax rules to be much tougher to prevent this kind of behaviour…This month all the world’s governments are meeting in Addis Ababa to agree on how to finance the fight against poverty, and developing countries are pushing hard for them to be given a say in writing global tax rules, potentially through a tax body at the UN…[Refers to Paladin Energy]