(L-R) Ambassador (Prof.) Tijjani Muhammad-Bande, Nigeria's Permanent Representative to the United Nations, Permanent Representative to the Republic of Zambia to the UN, Ambassador Chola Milambo, Permanent Representative of the Republic of Zambia to the UN and Chairman of the African Group, and Ambassador Sophia Tesfamariam, Permanent Representative of Eritrea to the UN at a conference on the Convention. Pictures by John Nyaku

UNGA member-states vote in support of adoption of Convention on International Tax Cooperation

Global Patriot Staff November 27, 2023 Business and Economy, Local, News, World Leave a comment 233 Views

The Member-States of the United Nations General Assembly (UNGA) 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 (AG) 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 125 votes in favor of the Tax Convention, with 48 votes against, and 9 abstentions.

A statement said that “this unprecedented step represents a significant advancement, showcasing the AG’s collective 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 in
line 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 at the UN, on behalf of the African Group during the 78th Session of the Second Committee underscored the importance of the convention: “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, the statement concluded, 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.