NEW YORK – A fair and inclusive international tax system is essential to advance democracy, human rights, sustainable development and a democratic and equitable international order, said George Katrougalos, the UN Independent Expert on the promotion of a democratic and equitable international order.
“Fiscal justice is not merely a matter of economic policy. It is a democratic imperative grounded in the right to development, international cooperation and the sovereign equality of States,” Katrougalos said, presenting his report to the General Assembly.
The report examines the impact of international tax arrangements on the ability of States to mobilise the maximum available resources needed to fulfil their human rights obligations. It highlights the growing concentration of wealth, large-scale profit shifting by multinational corporations and persistent financial transfers from developing to developed countries, which collectively undermine democratic governance and the realisation of economic, social and cultural rights.
“An international economic order that permits the continuous erosion of public revenues, particularly in developing countries, weakens democratic institutions, entrenches inequality and limits States’ capacity to meet their human rights obligations,” Katrougalos said.
The report assesses current international tax reform efforts and raises concerns that existing arrangements have not delivered equitable outcomes for developing countries.
“Decision-making processes must become more transparent, inclusive and representative in order to reflect the interests of all States on an equal footing,” the expert said.
He welcomed ongoing negotiations towards a United Nations Framework Convention on International Tax Cooperation, describing them as an historic opportunity to place human rights, democracy and international solidarity at the centre of global tax governance.
“The Convention must establish meaningful and enforceable commitments. A framework that promises fairness but lacks concrete obligations will not address the profound inequalities embedded in the current system,” he said.
The report calls for greater financial transparency, stronger taxing rights for developing countries, the protection of policy space for digital services taxation, and coordinated measures to ensure that extreme wealth contributes fairly to the public good.
The expert expressed concern over measures that undermine multilateral institutions and international accountability mechanisms, including sanctions targeting the International Criminal Court and United Nations human rights mandate holders.
“Fiscal justice is a prerequisite for democracy and social justice. A fair international tax architecture is not only a matter of revenue collection; it is a necessary condition for restoring democratic legitimacy, strengthening international cooperation and advancing the equal enjoyment of human rights for all,” Katrougalos said.
