Human Rights Treaty Bodies and Tax – Human Rights Watch

Report on Tax Policy and Human Rights: Emphasizing Sustainable Development Goals (SDGs)

Introduction

Tax policy is fundamentally linked to governments’ obligations under international human rights law, particularly the International Covenant on Economic, Social and Cultural Rights. Governments are required to utilize the maximum available resources, including through international cooperation, to realize human rights. This obligation extends to domestic tax policies, their extraterritorial impacts, and the positions governments adopt in international institutions. Taxation influences the enjoyment of numerous human rights by affecting resource availability and by creating legal obligations and behavioral incentives with broad human rights implications.

International human rights norms provide critical guidance for global tax policy debates, especially amid ongoing negotiations for a new United Nations tax convention expected to conclude by 2027. The convention’s terms of reference explicitly require alignment with states’ obligations under international human rights law.

Methodology

This report is based on an extensive analysis of 168 Concluding Observations issued by seven United Nations human rights treaty bodies between June 2007 and November 2024. These observations concern 98 countries worldwide and relate to 14 of the 17 Sustainable Development Goals (SDGs).

The data was compiled from the Universal Human Rights Index (UHRI) maintained by the UN Office of the High Commissioner for Human Rights (OHCHR). A keyword search for “tax” identified 259 relevant observations, which were manually filtered to 168 pertinent entries. Additional categorizations were applied based on the specificity and nature of recommendations, rights-based justifications, and thematic issues such as international cooperation, inequality, and tax abuse.

Human Rights Treaty Bodies and Concluding Observations on Tax Policy

Treaty Body	Number of Concluding Observations
Committee on Economic, Social and Cultural Rights (CESCR)	81
Committee on the Elimination of Discrimination against Women (CEDAW)	36
Committee on the Rights of Persons with Disabilities (CRPD)	20
Committee on the Rights of the Child (CRC)	20
Human Rights Committee (CCPR)	5
Committee on the Elimination of Racial Discrimination (CERD)	3
Committee on Migrant Workers (CMW)	3

Key Themes in Treaty Body Recommendations

The analysis identified ten recurring themes in treaty body recommendations related to tax policy and human rights, many of which align closely with the Sustainable Development Goals (SDGs):

1. International Cooperation and Extraterritoriality (30 observations)
2. Adequacy of Tax Revenues (16 observations)
3. Progressivity of Tax Systems (34 observations)
4. Non-Discrimination and Impact on Affected Groups (65 observations)
5. Public Spending and Resource Allocation (22 observations)
6. Accountability, Transparency, Participation, and Enforcement (30 observations)
7. Review and Impact Assessments (38 observations)
8. Redistribution and Inequality Reduction (40 observations)
9. Corporate Taxation (32 observations)
10. Tax Abuse and Evasion (20 observations)

Findings and Examples by Theme

International Cooperation and Extraterritoriality

At least 30 Concluding Observations emphasize states’ extraterritorial obligations and the need for international cooperation to combat global tax abuse, evasion, and illicit financial flows. These recommendations support SDG 16 (Peace, Justice and Strong Institutions) and SDG 17 (Partnerships for the Goals).

• Switzerland (CESCR, 2019): Recommended to combat tax evasion by corporations and high-net-worth individuals and regulate financial institutions to address fraud and tax evasion schemes.
• Bahamas (CEDAW, 2018): Urged to ensure financial and tax policies do not negatively impact women’s rights and gender equality.
• Mauritius (CESCR, 2019): Encouraged to harmonize corporate taxation regionally to maximize foreign investment contributions to public revenue.

Adequacy of Tax Revenues

Adequate tax revenue mobilization is essential for realizing economic, social, and cultural rights, directly supporting SDG 1 (No Poverty), SDG 3 (Good Health and Well-being), and SDG 10 (Reduced Inequalities).

• Canada (CESCR, 2016): Advised to adopt socially equitable tax policies to mobilize sufficient resources for human rights implementation.
• El Salvador (CESCR, 2014): Encouraged to boost revenue to increase resources for economic, social, and cultural rights.
• Pakistan (CESCR, 2017): Recommended to review tax regime to increase revenue.
• Uruguay (CRC, 2007): Suggested revising taxation policy to support poverty reduction strategies.

Progressivity of Tax Systems

Progressive taxation, where higher income groups contribute a larger share, is repeatedly recommended to reduce inequality and enhance redistributive effects, aligning with SDG 10 (Reduced Inequalities) and SDG 16.

• Burundi (CESCR, 2015): Advised to implement a progressive and socially just fiscal policy.
• Bosnia and Herzegovina (CESCR, 2021): Recommended to improve fiscal policy’s progressivity and redistributive impact.
• Bolivia (CESCR, 2021): Urged to increase direct taxes to reduce inequality.
• Italy (CESCR, 2022): Suggested revising corporate income, VAT, and inheritance taxes to expand fiscal space and increase redistribution.

Non-Discrimination and Impact on Specific Groups

Tax policies must avoid disproportionate negative impacts on vulnerable groups, supporting SDG 5 (Gender Equality), SDG 10, and SDG 16.

• Ireland (CESCR, 2015): Called to ensure austerity and tax measures do not discriminate or increase inequalities affecting marginalized groups.
• Lebanon (CEDAW, 2008): Urged to eliminate discriminatory tax measures against women.
• Belarus (CERD, 2017): Recommended to avoid taxes disproportionately affecting disadvantaged ethnic minorities.
• Angola (CRPD, 2023): Encouraged to make assistive devices affordable by providing tax subsidies and waivers.

Public Spending and Resource Allocation

Tax revenues must be effectively allocated to social sectors to realize human rights, supporting SDG 1, SDG 3, SDG 4 (Quality Education), and SDG 6 (Clean Water and Sanitation).

• Malawi (CESCR, 2024): Recommended to increase budget allocations for social programs including healthcare, education, and climate change adaptation.
• Panama (CESCR, 2023): Urged to increase social spending with focus on disadvantaged populations.
• Senegal (CRC, 2024): Advised to allocate adequate resources for children’s rights and social sector improvements.

Accountability, Transparency, Participation, and Enforcement

Procedural integrity in tax policymaking is critical for human rights compliance, aligning with SDG 16.

• Nicaragua (CESCR, 2021): Recommended strengthening accountability and transparency in tax revenue and expenditure.
• Paraguay (CESCR, 2015): Urged to ensure transparent application of income tax.
• El Salvador (CESCR, 2014): Called for participatory and transparent tax reform processes.
• Democratic Republic of the Congo (CESCR, 2022): Encouraged transparent and participatory tax policy formulation.

Additionally, 38 observations emphasize the importance of independent, participatory impact assessments of tax policies to monitor human rights effects.

Redistribution and Inequality Reduction

Redistributive tax policies are essential to combat economic inequality, directly supporting SDG 10.

• Argentina (CESCR, 2018): Recommended strengthening the redistributive capacity of the tax system.
• Guatemala (CESCR, 2022): Urged to pursue adequate, progressive, and socially equitable tax policies.
• Kyrgyzstan (CESCR, 2024): Advised to make fiscal policies more progressive to close inequality gaps.
• Romania (CESCR, 2024): Recommended reassessment of tax rates to increase redistribution for economic, social, and cultural rights.

Corporate Taxation

Corporate tax policy is a significant focus, with calls to increase corporate income taxes, review incentives, and combat corporate tax abuse, supporting SDG 8 (Decent Work and Economic Growth) and SDG 16.

• Malawi (CESCR, 2024): Recommended expanding the tax base and increasing corporate income tax.
• Italy (CESCR, 2022): Suggested revising corporate tax structure for greater progressivity and fiscal space.
• United Kingdom (CEDAW, 2019): Urged to combat money laundering and tax evasion, including through public registers and impact assessments on women’s rights.

Tax Abuse and Evasion

Tax evasion and abuse undermine resource mobilization for human rights realization. Treaty bodies recommend rigorous measures to combat these practices, aligning with SDG 16.

• Luxembourg (CESCR, 2022): Advised to strengthen measures against illicit flows and tax evasion by wealthy individuals and corporations.
• Cyprus (CESCR, 2024): Recommended enforcing obligations to prevent money laundering and tax evasion.
• Malawi (CESCR, 2024): Encouraged fostering international cooperation to tackle tax evasion and financial crimes.
• Guatemala (CESCR, 2022): Urged to combat tax evasion by strengthening tax administration.
• Honduras (CESCR, 2017): Recommended rigorous measures against illicit monetary flows and tax fraud.

Conclusion

The analysis of human rights treaty bodies’ Concluding Observations demonstrates a growing recognition of the critical role tax policy plays in fulfilling states’ human rights obligations and advancing the Sustainable Development Goals. The recommendations emphasize the necessity of:

• Mobilizing adequate and progressive tax revenues
• Ensuring non-discriminatory tax policies that protect vulnerable groups
• Enhancing transparency, accountability, and participation in tax policymaking
• Strengthening international cooperation to combat tax abuse and evasion
• Allocating tax revenues effectively to social sectors to realize economic, social, and cultural rights

These findings underscore the importance of integrating human rights principles into tax policy frameworks to support sustainable development and equitable resource distribution globally.

1. Sustainable Development Goals (SDGs) Addressed or Connected

The article highlights the connection between tax policy and human rights obligations, referencing 14 of the 17 Sustainable Development Goals (SDGs). The SDGs addressed or connected to the issues in the article include:

1. SDG 1: No Poverty
2. SDG 3: Good Health and Well-being
3. SDG 4: Quality Education
4. SDG 5: Gender Equality
5. SDG 6: Clean Water and Sanitation
6. SDG 8: Decent Work and Economic Growth
7. SDG 10: Reduced Inequalities
8. SDG 16: Peace, Justice and Strong Institutions
9. SDG 17: Partnerships for the Goals
10. Other SDGs related to economic, social, and cultural rights

This is supported by the article’s analysis of 168 Concluding Observations covering 14 of the 17 SDGs, emphasizing tax policy’s role in resource mobilization, redistribution, and addressing inequalities.

2. Specific Targets Under Those SDGs Identified

Based on the article’s content, the following specific targets under the identified SDGs are relevant:

• SDG 1 (No Poverty)
  • Target 1.3: Implement nationally appropriate social protection systems and measures for all
  • Target 1.a: Ensure significant mobilization of resources to end poverty
• SDG 3 (Good Health and Well-being)
  • Target 3.8: Achieve universal health coverage, including financial risk protection
• SDG 4 (Quality Education)
  • Target 4.a: Build and upgrade education facilities that are child, disability and gender sensitive
• SDG 5 (Gender Equality)
  • Target 5.1: End all forms of discrimination against all women and girls everywhere
  • Target 5.c: Adopt and strengthen sound policies and enforceable legislation for gender equality
• SDG 6 (Clean Water and Sanitation)
  • Target 6.1: Achieve universal and equitable access to safe and affordable drinking water
  • Target 6.2: Achieve access to adequate and equitable sanitation and hygiene
• SDG 8 (Decent Work and Economic Growth)
  • Target 8.5: Achieve full and productive employment and decent work for all
  • Target 8.7: Take immediate and effective measures to eradicate forced labor, modern slavery and human trafficking
• SDG 10 (Reduced Inequalities)
  • Target 10.1: Achieve and sustain income growth of the bottom 40% of the population
  • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, to progressively achieve greater equality
• SDG 16 (Peace, Justice and Strong Institutions)
  • Target 16.6: Develop effective, accountable and transparent institutions at all levels
  • Target 16.7: Ensure responsive, inclusive, participatory and representative decision-making
• SDG 17 (Partnerships for the Goals)
  • Target 17.1: Strengthen domestic resource mobilization, including through international support
  • Target 17.13: Enhance global macroeconomic stability through policy coordination

3. Indicators Mentioned or Implied to Measure Progress

The article implies or mentions several indicators that can be used to measure progress towards the identified targets:

• Tax Revenue as Percentage of GDP: Measures adequacy of tax mobilization for resource availability (related to SDG 17.1).
• Progressivity of Tax System: Assesses the degree to which tax policies are progressive and reduce inequality (related to SDG 10.4).
• Public Spending on Social Services: Budget allocations to health, education, social security, water and sanitation (related to SDGs 3, 4, 6, and 1.3).
• Incidence of Tax Evasion and Abuse: Measures effectiveness of policies combating tax evasion and illicit financial flows (related to SDG 16.4 and 17.1).
• Transparency and Accountability Mechanisms: Presence and effectiveness of public access to tax information and participatory policymaking (related to SDG 16.6 and 16.7).
• Impact Assessments Conducted: Number and quality of independent, participatory human rights impact assessments on tax policies (related to SDG 16.6 and 17.1).
• Redistributive Effect of Taxation: Measurement of how tax policies reduce income inequality (related to SDG 10.1 and 10.4).

These indicators are derived from the treaty bodies’ concluding observations and recommendations, which emphasize adequacy, progressivity, transparency, and impact assessment of tax policies.

4. Table of SDGs, Targets, and Indicators

SDGs	Targets	Indicators
SDG 1: No Poverty	1.3: Implement social protection systems 1.a: Mobilize resources to end poverty	Public spending on social protection programs Tax revenue as % of GDP
SDG 3: Good Health and Well-being	3.8: Achieve universal health coverage	Budget allocation to healthcare services
SDG 4: Quality Education	4.a: Upgrade education facilities	Public spending on education
SDG 5: Gender Equality	5.1: End discrimination against women and girls 5.c: Strengthen policies for gender equality	Tax policies eliminating gender discrimination Impact assessments on women’s rights
SDG 6: Clean Water and Sanitation	6.1: Universal access to safe drinking water 6.2: Access to sanitation and hygiene	Budget allocation to water and sanitation programs
SDG 8: Decent Work and Economic Growth	8.5: Full and productive employment 8.7: Eradicate forced labor and trafficking	Public spending on employment programs
SDG 10: Reduced Inequalities	10.1: Income growth of bottom 40% 10.4: Adopt fiscal policies for equality	Progressivity of tax system Redistributive effect of taxation
SDG 16: Peace, Justice and Strong Institutions	16.6: Develop accountable institutions 16.7: Inclusive decision-making	Transparency and accountability mechanisms Participation in fiscal policymaking Number of impact assessments conducted
SDG 17: Partnerships for the Goals	17.1: Strengthen domestic resource mobilization 17.13: Enhance global policy coordination	Tax revenue as % of GDP Measures against tax evasion and illicit flows

Source: hrw.org