Group presses UN to promote global tax cooperation to protect human rights – JURIST Legal News

Report on the United Nations Fourth International Conference on Financing for Development (FFD4) and Sustainable Development Goals

Introduction

Human Rights Watch (HRW) has emphasized the critical role of international tax cooperation in advancing human rights and achieving the United Nations Sustainable Development Goals (SDGs). Ahead of the United Nations Fourth International Conference on Financing for Development (FFD4), HRW called for a focus on promoting fair taxation systems globally to ensure adequate funding for essential public services.

Importance of Tax Justice for Sustainable Development

The FFD4 presents a vital opportunity to reform the current international tax system, which HRW describes as flawed and detrimental to many countries’ ability to generate essential tax revenues. The lack of sufficient tax income undermines governments’ capacity to provide fundamental human rights such as healthcare and education, directly impacting the achievement of the SDGs.

HRW advocates for the establishment of the UN Framework Convention on International Tax Cooperation, an international treaty designed to enhance coordination in tax policy and close loopholes that allow revenue loss. This treaty aims to support countries, especially in the Global South, in collecting adequate tax revenue to finance sustainable development initiatives.

Challenges in International Tax Systems

• Revenue Loss in Global South: Many countries, particularly in Africa, suffer significant financial losses due to ineffective tax systems, which impede their ability to meet minimum spending requirements for healthcare and education.
• Tax Avoidance and Evasion: New labor models such as platform work and the proliferation of tax havens facilitate tax avoidance and evasion by multinational corporations, reducing funding for public services.
• Impact on Human Rights: Insufficient tax revenues limit governments’ capacity to protect and realize human rights, affecting millions’ access to quality health services and education.

HRW’s Position on Tax Cooperation and Human Rights Economies

HRW stresses that equitable global tax rules are essential to building “human rights economies.” Effective tax cooperation enables governments to raise necessary revenues, thereby fulfilling international human rights obligations and reducing inequalities. This approach aligns directly with the SDGs, which call for inclusive economic growth, reduced inequalities, and access to quality education and healthcare.

FFD4 Conference Objectives and Commitments

1. Discuss Financing Reforms: The FFD4, scheduled for June 30, aims to address barriers to financing sustainable development at all levels.
2. Implement Outcome Document: Attendees will deliberate on the FFD4 Outcome Document, which outlines commitments to support sustainable development and human rights.
3. Key Commitments Include:
   • Ensuring transparency and accountability in public financial management.
   • Increasing investment in sustainable development projects.
   • Promoting inclusive global economic governance by enhancing representation of developing countries in international economic institutions.

Conclusion

In conclusion, HRW’s advocacy highlights the indispensable link between international tax justice and the realization of the Sustainable Development Goals. The FFD4 conference represents a crucial platform to advance reforms that will enable countries to mobilize the resources necessary to protect human rights and achieve sustainable development globally.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 1: No Poverty – The article discusses the need for fair taxation to fund essential services, which is critical to reducing poverty.
2. SDG 3: Good Health and Well-being – Access to healthcare is highlighted as a basic human right hindered by insufficient tax revenues.
3. SDG 4: Quality Education – The article mentions the impact of tax revenue shortfalls on education funding.
4. SDG 10: Reduced Inequalities – The article emphasizes reducing inequalities through equitable tax systems and international cooperation.
5. SDG 16: Peace, Justice, and Strong Institutions – The call for transparency, accountability, and inclusive governance in financial management relates to this goal.
6. SDG 17: Partnerships for the Goals – International tax cooperation and global economic governance reforms are central themes.

2. Specific Targets Under Those SDGs Identified

1. SDG 1
   • Target 1.4: Ensure that all men and women have equal rights to economic resources, including access to basic services.
2. SDG 3
   • Target 3.8: Achieve universal health coverage, including access to quality essential healthcare services.
3. SDG 4
   • Target 4.1: Ensure that all girls and boys complete free, equitable and quality primary and secondary education.
   • Target 4.c: Increase the supply of qualified teachers, especially in developing countries.
4. SDG 10
   • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, to progressively achieve greater equality.
5. SDG 16
   • Target 16.6: Develop effective, accountable and transparent institutions at all levels.
   • Target 16.7: Ensure responsive, inclusive, participatory and representative decision-making.
6. SDG 17
   • Target 17.1: Strengthen domestic resource mobilization, including through international support to developing countries.
   • Target 17.14: Enhance policy coherence for sustainable development.
   • Target 17.16: Enhance the Global Partnership for Sustainable Development.
   • Target 17.17: Encourage effective partnerships.

3. Indicators Mentioned or Implied to Measure Progress

1. Indicator for SDG 1.4: Proportion of population living below the national poverty line with access to basic services such as healthcare and education.
2. Indicator for SDG 3.8: Coverage of essential health services and financial protection in health.
3. Indicator for SDG 4.1: Completion rates of primary and secondary education.
4. Indicator for SDG 10.4: Growth rates of household expenditure or income per capita among the bottom 40% of the population.
5. Indicator for SDG 16.6 and 16.7: Measures of transparency and accountability in public financial management; representation of developing countries in international economic institutions.
6. Indicator for SDG 17.1: Tax revenue as a proportion of GDP; domestic budget allocations for health and education.
7. Indicators related to tax justice: Amount of revenue lost due to tax avoidance and evasion; number of countries participating in international tax cooperation treaties.

4. Table: SDGs, Targets and Indicators

Source: jurist.org