In a cautious note that belies the surprise of the global north, African countries and others in the global south have succeeded in getting a substantial concession to facilitate the access of much needed financial resources, crucial for responding to the current debt crises and facilitate the pursuit of achieving sustainable development.
It is not exactly known why the powerful countries allowed the resolution to pass easily but the African Union, in a statement, ululated over the development.
The statement reads in full: The Member-States of the United Nations General Assembly have voted with a majority of 125 in favor of adopting a Convention on International Tax Cooperation.
The resolution A/C.2/78/L.18/Rev.1, tabled by the African Group under the title: “Promotion of inclusive and effective international tax cooperation at the United Nations”, was voted on Wednesday at the UN Headquarters in New York, marking a historic moment for Africa and the world.
The resolution which was tabled was passed with a 125 vote in favor of the Tax Convention, with 48 votes against, and 9 Abstentions.
This unprecedented step represents a significant advancement, showcasing the AG’sollective dedication to global tax reform and paving the way for a more equitable and effective global tax system.
For developing nations, this resolution represents a beacon of hope. It will facilitate the access of much needed financial resources, crucial for responding to the current debt crises and facilitate the pursuit of achieving sustainable development. It is also inline with African aspirations as outlined in the AU Agenda 2063, reinforcing the commitment by Member States, to strengthening tax systems and fostering tax equity.
In addressing member-states, H.E Tijjani Muhammad-Bande, Permanent Representative of Nigeria, on behalf of the African Group during the 78th Session of the Second Committee underscored: “By adopting a unified, UN-led framework convention for international tax cooperation, we open doors to significant economic advantages.
“For emerging economies, this means greater ability to mobilize domestic resources, directly fuelling development projects and social welfare programmes. For more developed nations, it promises a level playing field, reducing instances of tax evasion and avoidance that currently undermine economic fairness.
“Moreover, recent data from the International Monetary Fund suggests that improving international tax cooperation could significantly reduce illicit financial flows, a scourge that deprives economies, especially those in the developing world, of critical funding. For all countries, illicit flows can fuel crime, destabilizing societies”.
This step is also in line with Africa’s call for the necessity for restructuring the global financial system to ensure increased funding for attaining the sustainable development goals, with due consideration given to the demands and requirements of developing nations.
