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African countries and civil society organizations have called for the inclusion of human rights in the proposed UN Tax Convention, potentially compelling firms to change their business practices. Discussions for the convention are set to continue this year at the UN General Assembly.
The proposal has elicited debate, with some viewing it as a response to governance issues. African advocates argue that human rights should guide global tax rules, noting that 32 UN instruments already incorporate this principle. They believe fair taxation is crucial for realizing human rights.
Negotiations for this convention began in September 2023, aiming to provide a platform for equal discussion of global tax rules. Prof. Attiya Waris, a UN expert on foreign debt and human rights, emphasized the need to integrate human rights into tax policy, as taxes are meant to improve human lives.
Further, the lobby groups have stressed the importance of addressing tax-related illicit financial flows within the convention.
While addressing member states at the second round of negotiations of the ToR for a UN Tax Convention in New York, Chenai Mukumba, Tax Justice Network Africa executive director, stressed that tackling tax-related illicit financial flows is crucial for Africa and aligns with the UN’s SDG targets.
“Taxation means public health, education and even the political stability of whole nations. As we proceed towards the Second Session, we urge member states to keep this in mind as we take steps to reform the international tax system that will improve domestic resource mobilisation and public service delivery in our countries,” Mukumba said.
The convention aims to address tax issues such as avoidance, evasion, and illicit financial flows, which undermine public trust and sustainable development. Including human rights in the convention's core principles is seen as vital for ensuring that tax systems are equitable and effective.
Incorporating human rights could provide African countries with a mechanism to address imbalances in the current system. This inclusion aligns with global efforts to reform the financial system and supports sustainable development and human rights goals.
PHOTO CREDITS | REUTERS