The global trend amidst multiple crises is for countries to elevate revenue mobilization efforts through reforms and legislative changes to achieve at least 18% of GDP to be able to pay for basic services of Government.
The current global undeniable multiple crises include cost of food crisis, cost of fertilizer crisis, debt overhang crisis where 60% of the 74 low-income countries are either in debt distress or at high risk of debt distress, cost of living crisis, donor financing crisis as donor countries are facing huge economic challenges on their own with global economic growth shrinks, high financing cost as US hike interest rates with appreciating US dollar against all major currencies.
So developing countries have no option but to embark on the necessary legislative reforms to reduce tax exemptions, reduce debt financing combined with prudent expenditure management to support financing of poverty reduction and growth oriented programs. The big question is: how can a business declare losses for continuous ten or more years and yet that business continues to survive; if that business is not deliberately evading corporate tax payment? So, the Minimum Alternate Tax (MAT) counters tax evasion by businesses. It’s not an additional tax to businesses. Therefore, in all these, private sector is key to carry out businesses and honor tax obligations transparently. We are in it together and we move.
