The Promotion of inclusive and effective international tax cooperation was voted by the United Nations (UN) at the headquarters in New York.
According to a press release by the African Union, the move was a historic moment as the agenda had been tabled by African countries to ease their financial burden.
The agenda was one of the concerns that President William Ruto raised at the European Parliament on Tuesday, November 23.
Ruto urged the members to support the move that could also pave the way toward fresh intergovernmental talks on global tax policy.
Also, this meant that the United Nations will be given the authority and mandate to monitor, evaluate and decide global tax rules.
“The resolution which was tabled was passed with a 125 vote in favor of the Tax Convention, with 48 votes against, and 9 Abstentions.
“This unprecedented step represents a significant advancement, showcasing the AG’s collective dedication to global tax reform and paving the way for a more equitable and effective global tax system,” the statement read in part.
Also Read: Ruto Under Fresh Pressure to Suspend Taxes
Kenyans Reaction to Europeans Votes at the UN
On the other hand, Kenyans have taken to X to criticize European Union (EU) members who voted against the agenda stating that they betrayed Ruto.
The concern is majorly based on the fact that while speaking before the EU member states a day before the voting exercise, members of the parliament celebrated Ruto, giving him a standing ovation.
However, some Kenyans noted with disappointment that some of those same individuals voted against the agenda the following day at the United Nations.
“Guess what ALL these European countries did the following day at the United Nations? They voted against Africa’s proposition for a fair tax regime. Yes!
“After giving Ruto a standing ovation and getting his people super excited, they all voted against the agenda he was pushing for. Talk of a stub on the back,” Pauline Njoroge, a vocal Azimio member and a communications strategist stated.
Notably, she was backed by many other Kenyans who noted that European nations were using Ruto for investment opportunities in Kenya but did not truly support his agenda for the development of Kenya.
Also Read: Ruto Asked to Be Honest with Jobless Kenyans
What the Decision Means to Kenya and African Nations
The African Union noted that for developing nations, the resolution was a win as “it will facilitate the access of much needed financial resources.
Also, the decision will be crucial for responding to the current debt crises and will facilitate the pursuit of achieving sustainable development.
“It is also in line with African aspirations as outlined in the AU Agenda 2063, reinforcing the commitment by Member States, to strengthening tax systems and fostering tax equity.
“This step is also in line with Africa’s call for the necessity for restructuring the global financial system to ensure increased funding for attaining the sustainable development goals, with due consideration given to the demands and requirements of developing nations,” added the statement.
Ruto’s Speech at the European Nation
While speaking before the European Union Parliament for the first time, President Ruto called on the parliament to review its loan terms for African countries, noting that they are unfair and hinder development.
Further, he noted that the high-interest rates and premiums demanded by private investors were creating a vicious cycle of debt for Africa.
“Adjusting the terms is possible, but it requires our collective will in order to form new forms of cooperation.
“We are not asking to be favored or to be treated differently; we want a fair financial system that treats everyone equally,” he stated.
