Your Excellency, Ambassador Munir Akram, President of ECOSOC,
Excellencies,
Distinguished Delegates and Observers,
Dear UN System Colleagues,
On behalf of the United Nations Secretariat, I welcome all to this 2021 Special Meeting on International Cooperation in Tax Matters.
ECOSOC has convened this meeting since 2017. It is an important global platform for enhancing intergovernmental consideration of tax issues, and for ensuring that domestic resource mobilization contributes to achieving sustainable development.
The events of the past year – a global health crisis that spiraled into an economic and social crisis – make this meeting more important than ever.
The COVID-19 pandemic has reversed progress on the 2030 Agenda for Sustainable Development. Inequalities have deepened, with uneven and unfair effects on women and girls. At the same time, natural disasters and environmental degradation urgently demand action.
As we search for solutions to these twin challenges of socio-economic and environmental crises, stark decreases in tax revenues and stimulus spending are draining state coffers. It will not be possible to overcome these challenges – and avoid a lost decade of development – without strengthening domestic resource mobilization and international tax cooperation.
We want to, and we must, rebuild. But we have to do it better. And in a way that addresses structural socio-economic inequalities, within and among countries, and protects our environment.
Let me share three sets of messages with you – on taxation and inequalities, the environment, and on health systems – before a final word, on the international tax system we want.
First, in the Outcome of the Financing for Development Forum earlier this month, UN Member States and institutional stakeholders highlighted the fundamental role of transparent, modern and progressive fiscal systems in combating socio-economic inequality.
I wish to echo the Forum remarks of the Secretary-General. He urged governments to consider a solidarity or wealth tax on those who have profited during the pandemic, in order to reduce extreme inequalities. We at the United Nations will continue to play a crucial role in supporting countries – particularly developing countries – in building capacities in tax administrations to ensure that tax revenues can be generated and collected.
Second, the Secretary-General has also called for a pandemic response that includes climate action and environmental protection. And, for aligning all recovery efforts with the 2030 Agenda and the Paris Agreement on Climate Change.
We need to make the quantum leap toward carbon neutrality. Taxation plays a key role. Putting a price on carbon would essentially shift the tax burden from taxpayers to polluters. I urge Member States to coordinate efforts on environmental tax policies and to work together toward a more sustainable future.
And third, COVID-19 has exposed the enormous risks created by under-investment in our health systems. Today, we want to shine a light on how tax policy and administration can support a sustainable and resilient recovery. This can be through tax measures aiming to:
- reduce the consumption of tobacco, alcohol and sugary beverages; or
- by earmarking certain tax income to invest in public health systems.
Environmental taxation can also have important co-benefits for health and well-being.
Ultimately, we need to advance towards an international tax system that takes into account the interests of all stakeholders and countries. And one that enables countries to tax the value creation within their borders. In this effort, citizens, including those below taxing thresholds, are key stakeholders. They rightfully expect tax systems that address the challenges of our times. Indeed, that provide public good and sustainable development for all and for future generations.
I wish you a most productive meeting.
Thank you for your attention.