Nigeria, others push for fairer global tax system

Nigeria and other developing nations have once again urged for a more equitable international tax system during the fifth round of talks on the UN's Framework Convention on International Tax Cooperation. The discussions, held at the UN Headquarters in New York from August 3 to 13, aim to prevent developing economies from being exploited and ensure multinational corporations pay their fair portion of taxes.

Dr. Dereje Alemayehu, GATJ's Executive Coordinator, reported that the session demonstrated increasing support for a global tax system that promotes a fair distribution of taxing rights and enhances transparency in international taxation. The first week of negotiations centered on the recently published zero draft of the Framework Convention, which aims to address critical issues in the international tax system.

The second week concentrated on the initial and second early protocols, which cover the taxation of digital services and the resolution of tax disputes. While some nations from the Global North displayed less ambition, Alemayehu argued that a robust outcome benefits them by unlocking crucial public finances needed for public services, development, climate action, and gender equality.

The GATJ called for sustained effort and stronger commitments as negotiations continue, emphasizing the need for countries to present ambitious proposals that reflect the gravity of challenges facing the global tax system. The next round of talks is set for Nairobi from November 30 to December 11, at which member states are anticipated to submit written comments on the draft text.

An updated version of the Framework Convention, incorporating member states' submissions and feedback from the latest discussions, is also expected before the Nairobi session.