Dr. Arjun Karki, LDC Watch Coordinator and GATJ Coordinating Committee Member, speaking at the 4th PrepCom for FfD4.

GATJ’s secretariat and regional members from Tax and Fiscal Justice Asia (TAFJA) and Tax Justice Network Africa (TJNA) shared interventions at the United Nations Headquarters on financing for development. GATJ’s members highlighted the need for progressive, gender-responsive tax systems and delivered a key message to governments and international institutions: the UN Tax Convention process is the best place for countries to rectify the broken global tax system. 

From April 28th to May 9th, members of the Global Alliance for Tax Justice (GATJ) participated in a series of meetings on financing for development at the UN Headquarters in NY. The ECOSOC Forum on Financing for Development was held April 28th – 29th, followed by the  Fourth Preparatory Committee (4th PrepCom) Session for the FfD4 from April 30th – May 1st, and finally the Second Intersessional Consultations from May 2nd – 9th. These meetings lay the groundwork in preparation for the 4th Financing for Development Conference, an international meeting that focuses on addressing the structural financial challenges required to achieve sustainable development, which will take place in Sevilla, Spain in July. 

“The systems that are meant to support global development and cooperation are showing cracks under the weight of repeated crises from deepening inequality to ecological collapse. Our global financial architecture is not just struggling; it is failing,” said Chenai Mukumba, Tax Justice Network Africa (TJNA) Executive Director and GATJ Coordinating Committee Member at the 4th PrepCom. Mukumba highlighted the importance of this moment.  “We now have an unprecedented opportunity to craft a more just and functional global economic order. One built on democratic governance, shared responsibility, and universal participation.” 

The meetings discussed the draft FfD4 outcome document, a non-binding document that will be further negotiated to be adopted at the FfD4 in July. Domestic public resources, a key piece of which is taxation, was on the agenda. As the Co-Coordinator of the Tax Justice Workstream of the CS FfD Mechanism, GATJ submitted comments on behalf of civil society with a key demand: endorse the adopted Terms of Reference for the UN Framework Convention on International Tax Cooperation (UN Tax Convention).

“We cannot capacity-build ourselves out of a broken system,” shared Everlyn Muendo, TJNA Tax Policy Lead at the 4th PrepCom. “The FfD process provides us with an opportunity to address this and transform the international tax system. In this regard, we urge Member States to promote the already existing intergovernmental process that is underway to develop binding commitments through the UN Framework Convention on International Tax Cooperation.” 

GATJ has long advocated for a UN-led, inclusive, and effective framework to govern global tax rules. The 3rd FfD conference was a key mobilising moment in the push towards reforming the global tax rules, with civil society and Global South countries calling for a reform of the global tax rules at the UN. In 2024, the historic adoption of the Terms of Reference for the UN Tax Convention marked a victory for civil society and Global South countries in the fight for inclusive and effective global tax rules. From now until mid-2027, countries are coming together to negotiate a legally binding Framework Convention and two early protocols.

At the start of the intersessionals Dr. Dereje Alemayehu, GATJ Executive Coordinator, put it directly: “We urge the Africa Group and the G77 to safeguard the hard-won gains achieved in the UN tax process. FfD4 must consolidate—not compromise—the progress toward a just and inclusive UN-led Tax Convention… to those countries participating in UN negotiations with evident ambivalence, we urge you to approach this process with sincerity and purpose. This can happen if you prioritize your enlightened national interests and the well-being of your own populations instead of the interests of your multinationals”.

Interventions also highlighted the importance of global tax reforms for Global South countries which have been historically excluded from the development of the global tax rules.

“Least Developed Countries, Landlocked Developing Countries, African countries and the Small Island Developing States, for so long have been bearing the brunt of climate change’s impacts, the consequences of an inequitable international financial architecture, and the repercussions of deeply flawed international tax rules,” shared Dr. Arjun Karki, LDC Watch Coordinator, APMDD Member, and GATJ Coordinating Committee Member, at the 4th PrepCom, underscoring the urgency of the moment. 

GATJ members also highlighted the need for language on progressive taxation, gender, and environmental justice principles. Dr. Karki went on to add, “The importance of progressive tax systems and progressive public spending, cannot be overemphasised… From the perspective of developing countries, it is also important that the Outcome Document includes a specific reference to the principle of Common But Differentiated Responsibilities and Respective Capabilities.” 

Dr. Alemayehu reiterated this, sharing, “It is essential to preserve robust language on gender equality and the promotion of gender-responsive, progressive tax systems.” 

As we look ahead to FfD4 in July, countries must support the creation of effective and inclusive global tax rules in the most democratic and inclusive process: the UN Tax Convention negotiations. It’s time for global tax rules that work for people and the planet.