Distinguished ATI Members,
Distinguished Observers,
Colleagues,
Thank you for inviting me to attend this General Assembly of the Addis Tax Initiative (ATI).
As I address you today, public finances are strained. Countries are facing increased financial and economic stress, heavy debt burdens and tight fiscal space. The combined impact of multiple crises has affected us all, but. developing countries have been hit the hardest. They are struggling to access and mobilize the financing needed to achieve the Sustainable Development Goals and for climate action.
Now more than ever, the world needs to focus on development financing.
The UN Secretary-General has called for an SDG Stimulus to support ambitious reforms in three areas. First, the Stimulus challenges the world to tackle the cost of debt and rising risk of debt distress. Second, it calls for a massive scaling up of affordable long-term financing for development. And third it proposes an expansion of contingency financing to countries in need. Beyond these global asks, the Stimulus also calls for national policies that better align domestic financial flows with the SDGs.
ATI can play a key role in responding to the Secretary-General’s call, starting with your emphasis on building both knowledge and partnerships for effective domestic resource mobilization. I encourage you to continue fostering collective action to strengthen the capacities of developing countries on tax and revenue matters. I would like to highlight three important areas of your work which can help bring the world back on track to deliver on the promise of the SDGs.
First is your emphasis on equitable tax policies and effective, efficient, and transparent tax administrations.
Advanced and progressive tax systems promote gender equality, wealth redistribution, decarbonization, health, and higher standards of life for people in marginalized sectors. Adopting effective tax systems and policies – and developing the administrative capacity to implement them – in turn requires political will, capacity building/enhancement, and partnering with relevant stakeholders and the wider international community.
Second is the strengthening of international tax cooperation.
International tax cooperation is essential to help address inequalities and the challenges developing countries face. It can support the harmonizing and coordination of policies that foster domestic resource mobilization and combat tax-related illicit financial flows. More than ever, international tax cooperation will be required to increase tax transparency and reap the benefits of enhanced exchange of information.
Third is your work to ensure that scaled up capacity-building fosters more inclusiveness and effectiveness in developing and implementing international tax rules. The varying needs and capacities of countries must be given due consideration in these matters, particularly countries in special situations. The United Nations General Assembly has recognised and emphasised this need in its recent resolution on promoting inclusive and effective international tax cooperation at the United Nations.
These are just a sample of the many ways in which the work of ATI contributes to developing fair and effective tax systems that support financing for development at all levels.
By strengthening domestic resource mobilization and international tax cooperation for sustainable development, we will make bold steps to build trust in public institutions and spur transformation for the SDGs.
Finally, I thank this ATI General Assembly for the timely focus on these issues and wish you a successful and productive meeting.