NLC tells IMF, World Bank to stop aiding unaccountable leaders

“We call on the IMF and World Bank to rethink their approach. Instead of imposing blanket austerity measures, IMF and WB must support developing nations in crafting progressive tax policies that protect the poor and vulnerable.

‘’Thus IMF and WB should support inclusive tax systems. In other words, the conceptualisation and implementation of tax systems must allow the participation of key national stakeholders, especially workers who constitute the bulk of tax payers in developing economies.

“Whether a tax is regressive or progressive begins at the table where it was conceived. Any group that is not at the table is on the menu. The new proposed tax bills in Nigeria is not inclusive, despite our loud cries at the formation of the tax committee, the government denied workers’ representation thus, its passage into law has become stymied.

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‘’IMF and WB must, therefore, encourage nations to allow for the participation of all critical stakeholders in all the processes from conceptualisation to the operationalisation of their tax systems. The use of social dialogue must, therefore, be prioritised.

“IMF and WB must tax wealth and not poverty. They should Implement higher taxes on luxury goods, capital gains, and the incomes of the ultra-wealthy. Tax justice is at the heart of social justice and global sustainability.

‘’So, IMF and WB should be at the forefront of co-creating a just and equitable world. You cannot talk of progressive tax when you increase taxes on food, energy, electricity, telecommunications, street traders, artisans and the informal economy workers, all in the guise of formalisation of the informal economy.

“The IMF and WB should close loopholes by ensuring multinational corporations pay their fair share of taxes in the countries where they operate. These institutions should invest in social protection by using tax revenues to fund education, healthcare and social safety nets that uplift the most vulnerable.

“Fiscal consolidation must not come at the expense of the poor. It must be rooted in equity and justice. The IMF and World Bank have a moral obligation to ensure that their policies do not exacerbate inequality or undermine the sovereignty of nations.

‘’Reduction of social inequality must drive policy prescriptions and not social mobility. The IMF and WB should advocate and support the proposed UN Convention on Tax which was initiated late 2022 to, among other things, take care of taxing digital organizations’ profits made in countries other than where they are physically located and to include all countries of the world in generating global tax frameworks.

“I urge these institutions to stop lending to governments that are unaccountable to their people. Such loans only deepen the crisis of governance and push nations further into the abyss of debt and underdevelopment.

‘’Instead, the IMF and World Bank must prioritize transparency, accountability, and the protection of workers’ rights. The path to sustainable development is not through debt traps and regressive tax policies.

‘’It is through empowering nations to build equitable tax systems that serve the many, not the few. The time for change is now.”

NLC tells IMF, World Bank to stop aiding unaccountable leaders

NLC tells IMF, World Bank to stop aiding unaccountable leaders