I have been contacted by a number of constituents regarding international tax rules and their impact on countries such as Zambia.
War on Want's report is a useful contribution as further steps are taken to counter tax avoidance to ensure multinationals pay their fair share. The global issue of tax avoidance and aggressive tax planning requires a coordinated approach to come up with effective solutions.
I am pleased that the UK has been at the forefront of multilateral action through the G20 and OECD Base Erosion and Profit Shifting project, which addresses the issue of tax avoidance by large corporations through allowing for the modernisation of international tax rules. The project helps ensure that profits are taxed where economic activities are performed. Country-by-country reporting, a key element of the project, requires multinational enterprises to provide annual information about their income and taxes for each jurisdiction they operate in.
Turning to Zambia specifically, the Department for International Development (DFID)'s programme in the country aims to enable Zambia to increase its tax take, and use its resources to deliver better services. Indeed, progress in tax reform and widening of the tax base is one of the ways in which the commitment of partner governments to reducing poverty and achieving the Millennium Development Goals is assessed.
DFID has a long history of support to the Zambian Revenue Authority to increase tax revenue and modernise tax processes. Since 1994, Britain's support has helped Zambia to double its tax to GDP ratio to over 21 per cent in 2012. Furthermore, I welcome DFID's funding for Public Financial Management and Anti-corruption Initiatives in the country. These initiatives will help to modernise core financial management and tax systems, improving the Government of Zambia's revenue generation.