New York, Feb 14 (Just News): Major international organizations, including the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations and the World Bank Group yesterday called on all governments to strengthen and increase the effectiveness of their tax systems to unlock much-needed domestic resources to achieve the Sustainable Development Goals (SDGs) and promote inclusive economic growth.
“I call upon the international community to establish effective mechanisms to combat tax evasion, money laundering and illicit financial flows, so that developing countries could better mobilize their own resources,” said UN Secretary-General António Guterres.
Additionally, IMF Managing Director Christine Lagarde said: “Funding the SDGs is an economic and ethical imperative with major implications for taxation. Countries themselves need to raise more revenue in an equitable way. And the entire international community needs to eradicate tax evasion and tax avoidance.”
Domestic resource mobilization presents a challenge for developing countries, who need to raise tax revenue of at least 15 per cent of GDP to be able to provide basic services, such as better road infrastructure, health care and public safety. Presently, in almost 30 of the 75 poorest countries, tax revenues are below the 15 per cent threshold.
At the same time, more advanced economies need to pay greater attention to spillovers from their tax policies and step up their support for stronger tax systems in developing countries. All countries and stakeholders need to continue working together on establishing a fair and efficient system of international taxation, including efforts to fight tax avoidance and tax evasion.
“Effective taxation is essential to promote a more inclusive and sustainable growth. It is fundamental to making globalisation work for all. It is crucial for achieving the Sustainable Development Goals,” said the Secretary-General of the OECD, Ángel Gurría.
During a three-day conference today through Friday at UN Headquarters in New York on “Taxation and the SDGs,” ministers and vice-ministers of finance as well as tax authorities, and senior representatives from civil society, private sector, academia, regional and global organizations will focus on key directions needed to strengthen tax policy and administration that is more sustainable and inclusive.
“Fair and efficient tax systems, combined with good service delivery and public accountability, build citizens’ trust in government and help societies prosper,” said the President of the World Bank Group, Jim Kim.
The conference, organized by the Platform for Collaboration on Tax (PCT), provides a unique opportunity to address relevant topics to end poverty, protect the planet and ensure prosperity for all. It will also focus on efforts to mobilize domestic resources for development; the role of tax in supporting sustainable economic growth; investment and trade; the social dimensions of taxation (income and gender inequality and human development); as well as capacity development and international tax cooperation.
The conference aims to provide guidance to countries and other stakeholders on how to better target tax efforts to achieve broader development goals. Insights from the conference will help inform and shape the future work of the PCT members and partners, including the IMF, OECD, UN and World Bank.
The conference will conclude with a statement of commitments from PCT members, which will inform a future agenda on tax policy and administration.