Human Rights Watch (HRW) highlighted the urgent need for global tax cooperation at the upcoming United Nations Fourth International Conference on Financing for Development (FFD4). The organization emphasizes that achieving human rights globally hinges on the establishment of fair tax systems. HRW is rallying support for the ongoing negotiations on a UN global tax treaty, which aims to overhaul a currently flawed international tax framework.

The FFD4 presents a critical platform to address the deficiencies in the global tax system that lead to significant revenue losses for countries, particularly affecting their ability to provide fundamental human services such as healthcare and education. The proposed UN Framework Convention on International Tax Cooperation seeks to enhance global tax policy coordination and plug the loopholes that prevent effective revenue collection.

In regions like Africa, inadequate tax systems result in considerable financial deficits, severely impeding nations' abilities to meet essential healthcare and educational needs. Tax avoidance practices, compounded by the rise of platform work and the proliferation of tax havens, exacerbate these challenges, enabling companies and individuals to evade fiscal responsibilities and thereby straining public service funding.

HRW advocates for the establishment of equitable global tax rules, describing them as pivotal for fostering "human rights economies." Effective tax cooperation is seen as vital for governments to secure the financial resources necessary to advance human rights and diminish inequalities.

The FFD4 conference, scheduled for June 30, aims to explore comprehensive reforms in financial systems to overcome obstacles to achieving the UN Sustainable Development Goals. The discussions will include strategies outlined in the FFD4 Outcome Document, which calls for enhanced transparency and accountability in financial management, increased investment in sustainable projects, and more inclusive global economic governance that boosts the representation of developing nations in international economic decision-making.

This focus on tax reform and human rights at the FFD4 underscores the interconnected nature of global finance and equitable development, positioning tax policy reform as a cornerstone for sustainable global progress.