Tax burden majorly on workers, foreign companies contribute nothing – Experts

Published on September 26, 2025 at 04:50 PM
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Tax justice advocates from Ghana, Kenya, and Nigeria have called for urgent reforms to Africa’s tax systems to reduce the burden on workers and ensure multinational corporations pay their fair share.

‎The call was made during a two-day interactive meeting of the Regional Working Group on Tax Policy Alternatives, RWOGTAPA, convened in Abuja by Public Services International, PSI in partnership with Friedrich Ebert Stiftung, FES.

The forum brought together trade unions, civil society organizations, and government representatives to deliberate on alternatives that prioritize equity and social development.

‎Representing the Nigerian government, Dayi Damulak, Chief Administrative Officer at the Technical Services Department of the Federal Ministry of Finance, defended recent tax reforms, stressing that taxation is indispensable for national development.

‎“Before you embark on any policy, there must be an identified problem that necessitates it,” he said, adding that the new tax law coming into effect in January 2026 will evolve with global realities. He clarified that Nigeria’s tax system remains progressive, exempting low-income earners those earning below ₦800,000 annually from taxation.

‎From Ghana, Charles Thompson Jr, Principal Revenue Officer of the Ghana Revenue Authority and National Secretary of the GRA Public Service Workers Union, decried excessive tax incentives and exemptions granted to multinational enterprises.

‎“Over the years, we have given incentives and exemptions without seeing the expected benefits such as job creation or infrastructure development. Meanwhile, workers continue to shoulder more of the tax burden,” he said. Thompson proposed the adoption of corporate Alternative Minimum Taxes to close Africa’s $400 billion revenue gap.

‎The German perspective was shared by Lenart Destergaar, Country Representative of Friedrich Ebert Stiftung, who drew comparisons between Africa and Europe.

‎“In Germany, people pay very high taxes, but they see results free healthcare, good roads, functioning electricity, and public transport. The bigger issue in Africa is not just raising taxes but ensuring taxpayers’ money is used transparently and effectively,” he said.

‎Kenya’s voice came through Dr Mercy Nabure, National Treasurer of the Doctors’ Union and a member of the Network of Unions for Tax Justice, who stressed the role of unions in demanding accountability.

‎“Our governments lack disposable income, largely due to profit-shifting and tax evasion by big corporations. Citizens and unions must unite to ensure tax funds translate into real benefits such as healthcare, education, and social protection,” she said.

‎At the end of the Abuja meeting, participants reaffirmed the urgent need for progressive tax systems across Africa ones that ease the burden on ordinary citizens while compelling corporations and high-income earners to contribute fairly.

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