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The Intersection of Tax and ESG: Benefits and Challenges

admin — Sun, 11 Jun 2023 21:00:01 +0000

The Intersection of Tax and ESG: Benefits and Challenges

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admin Sun, 06/11/2023 - 21:00

Friday, May 26, 2023

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The Citizen

Original Article

The Intersection of Tax and ESG: Benefits and Challenges

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Environmental, Social, and Governance (ESG) considerations boast a rich heritage and have evolved through a series of disclosure frameworks.

Since the embrace of the concise acronym "ESG," this intricate concept has garnered remarkable momentum, emerging as a prominent and timely topic within the corporate scene.

ESG, entails integration of social, environmental and governance considerations into companies’ strategies to create sustained long-term value.

The Environmental "E" aspect of ESG encompasses numerous considerations, including but not limited to climate change, Greenhouse Gas (GHG) emissions, natural resource depletion, waste and pollution, deforestation, hazardous materials, and biodiversity.

The Social "S” relates to factors such as the protection and promotion of human rights, ensuring the well-being and safety of employees, contributing towards taxes, and assessing the impact of a business on local communities.

On the other hand, the Governance "G" is about how a company manages its affairs and deals with issues such as political contributions, tax planning, executive compensation, transparency, board independence, and renewal of leadership.

There is a growing consensus that tax and ESG convergence would yield positive outcomes for companies and tax revenue authorities at large.

As we dive into this matter, it is imperative to explore some of the benefits that companies and revenue authorities can accrue by integrating tax with ESG.

It is not unusual for companies to focus on profits by prioritizing their financial objectives over environmental and social goals.

However, corporates can be encouraged to make greener investments such as energy efficient technologies through tax incentives and credits.

This will indeed help them demonstrate a responsible corporate behaviour and commitment to address climate change and environmental challenges thus enhancing their reputation.

A good example is where Parliament could enhance the law to grant capital allowances to companies operating in the renewable energy and manufacturing sectors, while factoring the high costs associated with enhancing energy efficiency.

This would provide a financial incentive for companies to reduce their reliance on fossil fuels and move to low-carbon economy.

Further, taxation can play a vital role in compelling businesses to promote and adopt sustainable supply chains.

Implementation of reliefs in diverse forms of taxation, such as Customs, Excise, and Value-Added Tax (VAT), have the ability to foster sustainable procurement and supply chain practices.

For instance, customs duty could be reduced or eliminated for environmentally friendly products; imports and excise duties could be lowered for low-carbon alternatives to fossil fuels, and certain "green" supplies granted VAT exemptions.

Such incentives will undoubtably contribute to decarbonization efforts and foster the development of sustainable supply chains. An additional example of efforts to address adverse environmental and social impacts can be observed in the imposition of excise duty on the importation of second-hand motor vehicles that exceed a ten-year age limit from the year of their production.

Simultaneously, the introduction of tax incentives designed to promote the adoption of electric vehicles will further contribute to these efforts.

Integrating ESG and tax principles will also build stakeholders and investors’ confidence. When companies adopt a transparent tax planning, they send a strong signal to stakeholders that they take sustainability seriously.

By showcasing a steadfast dedication to tax transparency, companies not only exhibit their capacity to proactively address potential risks but also cultivate trust among their stakeholders and bolster their reputation as conscientious and socially responsible entities.

Taking the above benefits into account, it is pertinent to appreciate some of the challenges that could arise when aligning tax with ESG objectives. The primary challenge is the absence of universally accepted metrics to evaluate the effectiveness and advancement of ESG and tax initiatives. This predicament could be mitigated through collaborative efforts by regulatory bodies and industry stakeholders to create standardized metrics to monitor ESG and tax performance.

Additionally, lack of transparency and complexity in navigating ESG, and tax regulations is another hinderance to the integration. This can be solved through regular training and engagement with specialized tax and ESG experts to create awareness and alleviate confusion.

Lastly, governments should consider offering grants and funds to enterprises that prioritize sustainable investments to drive the ESG agenda. With the Tanzania Finance bill of 2023 in the horizon, an intriguing question looms large: Will the government seize the opportunity to integrate tax policies that embrace ESG principles?

In conclusion, there is a clear convergence between ESG and tax, and it is essential for tax and ESG stakeholders to evaluate their roles and understanding of ESG-related tax regulations and their impact on business operations.

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Access to justice in Tanzania: It is high time the legal system was decolonised

admin — Sun, 11 Jun 2023 20:00:01 +0000

Access to justice in Tanzania: It is high time the legal system was decolonised

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admin Sun, 06/11/2023 - 20:00

Sunday, May 28, 2023

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The Citizen

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Access to justice in Tanzania: It is high time the legal system was decolonised

Summary

One of the major challenges facing the judiciary in administration of justice is the delay of cases. The judiciary is overwhelmed by a large number of cases pending in our courts.

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A few days ago, lawyers and members of the Tanganyika Law Society, the bar association of mainland Tanzania convened in Arusha for their annual general meeting. The main theme of the annual conference centred on the assessment of the country’s legal institutions in delivery of and access to justice in Tanzania. The theme of the meeting was very timely as administration of justice and citizens’ access to the justice system face so many challenges. The entire legal system needs to be transformed to effectively serve its purpose.

In my view, there are two major challenges facing justice administration in this county. Firstly, the justice system is very costly in terms of money and time needed to settle disputes. It is a common phenomenal for disputes in courts to take years before they are resolved. This defeats the purpose as justice delayed is justice denied. Secondly; court procedures are too technical and often bureaucratic. There are several occasions where disputes referred to the court system are terminated prematurely for non-compliance on some legal technicalities. Procedures which ought to assist parties and courts to arrive at fair and equitable judgements become impediments to accessing justice. The parties in dispute often end up being denied an opportunity to resolve their matters once and for all.

From 1920, Tanzania, then known as Tanganyika, adopted a common law legal system. The common law is an adversarial system in which parties involved in a dispute compete in court to obtain justice. It is based on the premise that the disputing parties must utilise their resources and technicalities to persuade the court to interpret laws in their favour. Ever since it was adopted, the legal system and jurisprudence used to create and enforce the law has been static, with little modifications to respond to social, cultural, economic, political and technological trends in the society. The laws that have been created and their interpretation have failed to incorporate the aspirations and best practices of the communities.

In many ways, the legal framework has not been compatible with best practices relating to disputes settlements. Parties to the disputes are prepared to deploy both clean and dirty tricks to get justice in their favour. In many occasions, laws are enforced in a manner that restricts local communities from interpreting and embracing their own communal methods and approaches to resolving conflicts.

Winner takes all versus win a little, lose a little

In the dispute settlement process, our courts follow adversarial principles. Under this system, parties to the case will fight to get the assistance of the courts to win their case. The judges and magistrates act with the assumption that they maintain impartiality and will base their decisions on the interpretation and application of legal principles to the factual circumstances of the cases. In their pursuit of victory, the parties to the case employ a range of legal strategies, including the engagement of lawyers, to secure a favourable ruling in their favour. As a result, the party pronounced as the winner by the court takes all.

I find this very problematic as it not the surest way to bring peace and harmony to the society even in a situation when disputes are thought to be resolved fairly. The losing side will always not agree and settle, and this is why many disputes are not resolved in the first instance. The dissatisfied part will appeal up to the highest court of the land, hence causing a backlog of pending cases in the courts. We are humans. Our disputes arising out of our complex nature are also often too complex for a party to win everything and the other party lose everything.

Take a good example of traditional administration of justice among Maasai people. I had the privilege to work closely with some communities in northern Tanzania. I learnt that before they were interrupted by the current legal systems, the society had its own traditional ways of dispute settlement. It was very effective in terms of the time involved in resolving the dispute as well as the outcome of the settlement.

For example, when a person commits a murder, the person who commits the offence will be penalised by paying compensation mainly in the forms of a number of cows to the family of the victims. However, this was disputed. Under the legal system, a person who has committed the same offence will be arrested by the state and upon being found guilty, they will be sentenced to death. An oft-overlooked consequence of this is that in many murder trials, communities do not cooperate well with prosecutors. They are not interested in the outcome of the process as the legal system does not compensate the victim, and secondly, they fear losing another of their member to the unforgiving hand of the law, which prescribes death.

Alternative dispute settlement mechanisms

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US investors inject $40m for Zanzibar’s blue economy lots

admin — Sun, 11 Jun 2023 15:00:01 +0000

US investors inject $40m for Zanzibar’s blue economy lots

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admin Sun, 06/11/2023 - 15:00

Tuesday, May 23, 2023

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The Citizen

Original Article

US investors inject $40m for Zanzibar’s blue economy lots

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Arusha. The United States has pledged to support the private sector growth in East Africa and invested more than $ 40 million to the blue economy in Zanzibar.

The commitment was made by the American ambassador to Tanzania Michael A. Battle during his visit to the East African Business Council (EABC) head office in Arusha on Thursday.

"We are focused on promoting the growth of the private sector and sustainable economic development in the East African Community (EAC) region", he said.

Taifa Group signs Sh330 billion electricity deal in Zanzibar

According to him, some $40 million has been injected by the US investors for the development of various segments of the blue economy in the Isles.

These are fisheries, aquaculture, maritime transport, coastal marine and maritime transport, tourism, energy and other marine ecosystem services.

Mr Battle, who is also accredited to the EAC, paid a visit to the EABC offices to explore areas of partnership aimed at strengthening East Africa- USA trade and investment ties. EABC executive director John Bosco Kalisa told the US envoy that the bloc was open for business.

"There is a political goodwill from the EAC Heads of State to improve trade and investment climate in the region,” he pointed out.

He said the admission of DR Congo has expanded the bloc's market to $305.3 billion and a total population of 283.7 million.

The EAC has conducted a verification mission to assess Somalia's readiness to join the Community as the eighth member.

Mr Kalisa further stated that the regional business body was committed to promoting trade for peace programmes in the region "to ease doing business".

Also highlighted during the visit was USAID's Feed the Future project through TradeMark Africa and Corporate Council of Africa.

Other issues which came up for discussion were the US East Africa Trade and Investment Forum and the forthcoming US- Africa Business Summit 2023 to be held in Botswana.

“The EAC treaty is people-centered and market-driven, and EABC is at the forefront of championing advocacy for the full implementation of the Common Market and Customs Union protocols,” Mr Kalisa said.

However, he emphasized that the acceleration of the Common Market was crucial for the achievement of the Monetary Union and attendant single currency economy.

Other areas discussed during the visit included strengthening partnerships with US Alumni and AmCham, tax harmonization, women, youth, and small and medium enterprises (SMEs) in trade.

The US ambassador was also informed of the 14th African Union Private Sector Forum 2023 in Nairobi, and the East African Business and Investment Summit slated for Kampala, Uganda later this year.

Later Mr Kalisa hosted Uganda's High Commissioner to Tanzania and the EAC Fred Mwesigye expressed his commitment to promote trade ties between Tanzania and Uganda through closer collaboration with EABC.

Other areas discussed during the visit included the African Continental Free Trade Area and improving productive capacities based on country comparative advantages.

The two also deliberated on areas of partnership to strengthen economic diplomacy, empower SMEs, youth and women in trade, and the Africa Waste is Wealth Conference in Nairobi later this year.

"Economic diplomacy is central to boosting intra-EAC trade and creating shared prosperity and jobs for East Africans," the EABC boss explained.

He elaborated that the regional business body championed public-private dialogues with ministers and trade facilitation agencies at the borders "to unlock barriers to trade, especially non-tariff barriers".

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Mwinyi woos investors from Qatar

admin — Sun, 11 Jun 2023 12:00:01 +0000

Mwinyi woos investors from Qatar

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admin Sun, 06/11/2023 - 12:00

Tuesday, May 23, 2023

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The Citizen

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Mwinyi woos investors from Qatar

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Doha. Zanzibar’s President Hussein Mwinyi has called on Qatari investors to take up investment opportunities in the tourism, real estate, and energy sectors in Zanzibar, media in the Gulf state has reported.

During the meeting QC First Vice-Chairman Mohamed bin Twar Al Kuwari the two parties discussed the bilateral relations in the commercial and economic fields and the means to enhance them, in addition to the investment climate and opportunities available in both countries and ways to develop the trade exchange.

On his part, President Mwinyi said that Zanzibar has achieved significant development in attracting and safeguarding sustainable investments and that there are a host of opportunities in various sectors like infrastructure real estate, tourism, hospitality, agriculture, industry, and energy.

Mwinyi said the strategic location of Zanzibar next to several economic blocs such as the Southern African Development Community (SADC), the East African Community (EAC) and the African Continental Free Trade Area (AFCFTA), affirming that these blocs offer huge markets for investors.

He also pointed out that his delegation includes officials from various economic authorities in Tanzania and Zanzibar, in particular the Zanzibar Investment Promotion Authority (ZIPA) and Tanzania Investment Centre, calling on Qatari businessmen to invest in Zanzibar, which offers feasible opportunities, especially in the real estate, tourism and hospitality sectors.

Zanzibar is interested in developing conference tourism, especially with the presence of attractive tourist resorts, as well as its interest in heritage, he added.

For his part, Mohamed bin Twar Al Kuwari lauded the strong relations between Qatar and Tanzania, noting that their trade exchange amounted to QR 317 million last year compared with QR 282 million in 2021, an increase of 12 percent.

He said that Zanzibar is an important tourism destination, stressing that the time is appropriate to explore the investment opportunities to strengthen cooperation between both parties and that Qatar Chamber supports this cooperation and is prepared to host a seminar to highlight the opportunities available in Zanzibar among Qatari investors.

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A Highly Innovative Growth-boosting Challenge is Launch in Liberia Today

admin — Mon, 20 Jun 2022 15:40:01 +0000

A Highly Innovative Growth-boosting Challenge is Launch in Liberia Today

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admin Mon, 06/20/2022 - 15:40

Thursday, June 2, 2022

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Business – FrontPageAfrica

Original Article

A Highly Innovative Growth-boosting Challenge is Launch in Liberia Today

MONROVIA — Micro, small and medium enterprises (MSMEs) comprise the lifeblood of economies the world over, but especially in developing ones such as Liberia.

By Luther D. Jeke and Robert O. Davis

“The largely informal Micro, Small, Medium Enterprises (MSMEs) constitute the backbone of Liberia’s economic landscape. Women [and youth] entrepreneurs have the high[est] concentration in this sector,” reads the July 2021 recalibrated Pro-Poor Agenda for Prosperity and Development (PAPD), Liberia’s current five-year national development plan. MSMEs account for most businesses and are important contributors to economic growth, job creation, and poverty reduction in Liberia.

But a key constraining factor to MSME growth is limited access to finance, which exacerbates poverty and inequality. In Liberia, more than 50% of the population lives in poverty, particularly in the rural areas (71.8%) as compared to urban settings (31.5%), according to data from the Liberia Institute for Statistics & Geo-information Services.

The Growth Accelerator Liberia programme is an innovative and practical initiative aimed at supporting impactful ventures and cooperatives to scale up through access to technical assistance, mentorship, and co-financing grants of up to US$40,000. Running until 2024, the programme contributes to the reduction of poverty and inequality by targeting youth, women, and persons with disabilities in supporting the creation of resilient livelihood and income-generating opportunities for poor and vulnerable populations.

This growth-boosting challenge principally targets seven (7) counties, namely Montserrado, Cape Mount, Grand Bassa, Sinoe, Grand Gedeh, Lofa and Nimba. However, applications are open to all 15 counties of Liberia. Applications can be found at the various community radio stations and County Service Centers as well as online at www.growlib.org.

Entrepreneurs and agricultural cooperatives, especially those in the targeted counties, are highly encouraged to apply. The application period opens on the 2nd of June 2022 and closes on the 16th of June 2022.

Last year, the inaugural launch of the growth challenge witnessed five (5) winners from a pack of 167 businesses across nine (9) counties. Eighty percent of the successful ventures “were established and are being run by young people aged between 26 and 35 years. Each of these secured business development grants ranging between US$ 36,500 and US$ 40,000, amounting to 81% of the US$194,750 grant funding awarded in December 2021” (Want to read more on the inaugural winners? See here)

Building on the success and lessons learned from the implementation of Cohort-1, this year the programme adds a special cohort for Agricultural Cooperatives. A total of 10 Agricultural Cooperatives will be selected from across Liberia to go through a series of activities aimed at strengthening their capacity. The contracted local and international business development services providers, Agro Tech Liberia and East Africa Market Development Associated Ltd will work with iCampus to advise, provide expertise, and bring to the programme the knowledge required to enable the cooperatives to ensure sustainability over time.

During the Programme, ten (10) cooperatives will be equipped with professional skills, business development capacity, and opportunities to interact with potential business partners, investors, and financial backers. Cooperative development in many countries has shown that farmers who are effectively organized can benefit from aggregated links to markets and services, from accessing centralized services that can help them achieve higher yields and higher incomes, and from speaking with a collective voice to advocate for their needs. At a global level, studies have proven that countries with the highest share of cooperatives in marketed outputs (e.g., Taiwan, Korea, the Netherlands, France, etc.) also have high average yields for staple crops like rice and wheat, as well as substantial cash crop exports. Some of the problems faced by agricultural cooperatives in Liberia have been, among others, poor management, lack of capital resources, inadequate training, extension and education programmes, lack of communication and participation among members, unclear and inadequate government policies on the development of agricultural cooperatives, high fragmentation of land holdings, and weak linkages among the activities of the cooperatives.

In collaboration with the Ministry of Commerce and Industry and with funding from UNDP Liberia, the Growth Accelerator Liberia Cohort II Programme is run by iCampus Liberia in partnership with Accountability Lab Liberia, Growth Africa, Business Startup Center-Monrovia, East Africa Market Development Associates Ltd., and Argo Tech Liberia.

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The good we do when we work together

admin — Sun, 19 Jun 2022 19:40:01 +0000

The good we do when we work together

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admin Sun, 06/19/2022 - 19:40

Friday, June 17, 2022

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Searchlight

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The good we do when we work together

As individuals, we do have the power to make a difference – in large and small ways. Over the years, the pages of our newspaper have regularly provided evidence of this, with the past two weeks being no exception. In today’s edition, we feature on the front page, a story that demonstrates the inherent compassion and generosity of our people towards each other and what we are able to do when we work together for good.

Two weeks ago, we carried a story that detailed the plight of a young family that had lost all their material possessions in a housefire. Within hours of publication of the story, we began receiving calls at SEARCHLIGHT from people who wanted to help. Individuals at home and in the Diaspora began to mobilize assistance and within days, the circumstances of a father and his three children were transformed.

In last Friday’s edition, we featured on our front page the story of a young Vincentian adult who is now hearing her own voice for the first time in her 20 years of life, thanks to an intervention facilitated by the World Paediatric Project (WPP) which itself was the beneficiary of a donation this week from the local office of a shipping company. In the two decades that the WPP has been working in St Vincent and the Grenadines, thousands of Vincentian children have benefited from lifesaving and life-altering surgical procedures that they may not have otherwise been able to access. The WPP has been able to do its work only because of the generosity of people all over the world who share their vision and want to be part of the solution.

There are other stories in today’s edition, (page 14) that speak to our willingness as inhabitants of this world to offer assistance to those less fortunate than ourselves or to be an active partner in projects that build communities and improve lives. These include the donation by a church to a beach clean-up and upgrade project; and the generosity of a University and technology company in Taiwan which has resulted in the provision of 100 laptops to teachers in St Vincent and the Grenadines.

Sometimes, when individuals at risk or in need come to our attention, or when gaps are identified in our communities in the provision of material support, the default position of some is to point fingers and ask questions with regard to institutional help – what is the Government doing; what about the churches? Look at how much we can do when we look inwards and challenge ourselves to make a difference.

This is by no means an attempt to absolve the Government of its responsibility to provide social safety nets for its most vulnerable citizens. Rather, it is a celebration of the inherent good resident in mankind that we ought to recognize with as much aplomb as when we point out societal evils.

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ASUS Foundation delivers 100 laptop computers to the SVG Embassy in Taiwan

admin — Sun, 19 Jun 2022 19:00:01 +0000

ASUS Foundation delivers 100 laptop computers to the SVG Embassy in Taiwan

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admin Sun, 06/19/2022 - 19:00

Friday, June 17, 2022

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ASUS Foundation delivers 100 laptop computers to the SVG Embassy in Taiwan

In what has been described by the Embassy of St Vincent and the Grenadines in the R.O.C. (Taiwan) as a “partnership of benevolence”, ASUS Foundation, a Taiwan-based, multinational computer hardware and consumer electronics company, delivered 100 laptop computers to the embassy on June 8, 2022.

According to the embassy, the terms of the partnership are where the embassy, using funds raised by the Tunghai Alumni in 2021 for learning recovery in St Vincent and the Grenadines following the devastation caused by the April, 2021 explosive eruptions of La Soufriere, purchased from ASUS Foundation 50 laptops at a specially discounted company price, and ASUS Foundation donated 50 laptops to match the embassy’s purchase, a release states.

Speaking on behalf of the embassy, ambassador, Andrea Bowman lauded the ease with which ASUS Foundation entered into the “partnership arrangement” which redounds to the benefit of teachers and students in St Vincent and the Grenadines (SVG).

These laptop computers for teachers are geared towards complementing the one 150 tablet computers which were donated last year by the SHEICO Group in Yilan County for students in SVG who were most negatively impacted by the disruptions caused by the eruptions.

Ambassador Bowman further stated that, “our embassy is pleased with the manner in which our linkages with Taiwanese businesses are continuing to develop as our embassy approaches the third anniversary of its opening in August, 2019”.

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The good we do when we work together

admin — Sat, 18 Jun 2022 15:00:02 +0000

The good we do when we work together

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admin Sat, 06/18/2022 - 15:00

Friday, June 17, 2022

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Original Article

The good we do when we work together

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ASUS Foundation delivers 100 laptop computers to the SVG Embassy in Taiwan

admin — Sat, 18 Jun 2022 14:20:01 +0000

ASUS Foundation delivers 100 laptop computers to the SVG Embassy in Taiwan

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admin Sat, 06/18/2022 - 14:20

Friday, June 17, 2022

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Original Article

ASUS Foundation delivers 100 laptop computers to the SVG Embassy in Taiwan

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Taiwan Embassy praises 9 Saint Lucians for Completion of 2021 TaiwanICDF

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Taiwan Embassy praises 9 Saint Lucians for Completion of 2021 TaiwanICDF

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admin Wed, 02/23/2022 - 23:40

Tuesday, February 8, 2022

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Local Archives - THE STAR - St Lucia

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Taiwan Embassy praises 9 Saint Lucians for Completion of 2021 TaiwanICDF

In total, 45 people participated in the 21 workshops or sub-conferences held last year. The TaiwanICDF Workshops are very popular among the Taiwan friendly countries.

The post Taiwan Embassy praises 9 Saint Lucians for Completion of 2021 TaiwanICDF appeared first on THE STAR - St Lucia.

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Taiwan

The Intersection of Tax and ESG: Benefits and Challenges

Thank you for reading Nation.Africa

Commentary on the agreement between the Emirate of Dubai and Tanzania

Why more women than men get religious

Access to justice in Tanzania: It is high time the legal system was decolonised

Summary

Thank you for reading Nation.Africa

Access to justice finally a reality in rural Tanzania

Why dispensation of justice will continue to be delayed

US investors inject $40m for Zanzibar’s blue economy lots

Thank you for reading Nation.Africa

Taifa Group signs Sh330 billion electricity deal in Zanzibar

It's the content that counts

Hasheem Thabeet to miss AfroCan basketball competition

Mwinyi woos investors from Qatar

Thank you for reading Nation.Africa

It's the content that counts

Hasheem Thabeet to miss AfroCan basketball competition

Commentary on the agreement between the Emirate of Dubai and Tanzania

The glitz, the glam and the kids

A Highly Innovative Growth-boosting Challenge is Launch in Liberia Today

The good we do when we work together

ASUS Foundation delivers 100 laptop computers to the SVG Embassy in Taiwan

The good we do when we work together

ASUS Foundation delivers 100 laptop computers to the SVG Embassy in Taiwan

Taiwan Embassy praises 9 Saint Lucians for Completion of 2021 TaiwanICDF