The United Nations has officially commenced negotiations on a Framework Convention on International Tax Cooperation, a move hailed by global labour organisations as a crucial step toward addressing tax evasion, harmful competition, and financial inequality.

A statement revealed that the International Trade Union Confederation and Public Services International have welcomed the talks, emphasising the need for a fairer and more inclusive global tax system.

According to ITUC General Secretary Luc Triangle and PSI General Secretary Danny Bertossa, the discussions provided an opportunity for all nations, especially developing economies, to have a say in shaping tax rules that impact their fiscal sustainability.

“A major concern driving the negotiations is the increasing competition among nations and multinational corporations, which has led to a steady decline in tax rates.

Many companies exploit loopholes by shifting profits to low-tax jurisdictions, depriving governments of vital revenue needed for social services, infrastructure, and development,” it stated.

The ITUC and PSI emphasised the need for key reforms to ensure meaningful progress in the negotiations while advocating a majority-based voting system to prevent delays caused by the requirement for unanimous decisions.

Additionally, they called for fast-tracking reforms that tax multinational corporations based on where they conduct business rather than allowing them to shift profits to low-tax jurisdictions. Furthermore, they stressed the importance of implementing strong measures to prevent capital from evading national tax systems and ensuring transparent global taxation.

In a joint letter to UN negotiators, Triangle and Bertossa urged all member states to act with “ambition and solidarity” to deliver a global tax framework that prioritises fairness over corporate interests. They stressed that without decisive action, wealth inequality will deepen, and poorer nations will continue to struggle with weak fiscal capacities.

The UN negotiations, which began on February 3, would determine the terms of engagement for future discussions. As the global labour movement pushes for progressive tax policies, the outcome of these talks could reshape international tax cooperation and strengthen economic justice worldwide.

“For many developing nations, these negotiations represent a vital chance to secure financial autonomy and end the systemic disadvantages imposed by existing tax rules. The coming months will be critical in determining whether the global community can agree on a tax system that benefits all, not just the wealthiest few,” it added.

https://punchng.com/un-begins-talks-on-global-tax-reform-framework/