The Platform for Collaboration on Tax (PCT) was set up by the IMF, OECD, UN and World Bank at the request of the G20 of countries to recommend mechanisms to ensure effective implementation of technical assistance programs. On 14 February 2018 a three day conference on the subject of Taxation and the Sustainable Development Goals (SDGs) opened in New York. The conference is being attended by ministers and deputy ministers of finance; tax authorities; and senior representatives from the private sector, the academic world, regional and global organisations and civil society.

The opening session emphasized the need for governments to strengthen their tax systems to increase their effectiveness and generate the necessary domestic resources to meet the SDGs and support inclusive economic growth. Research by experts has suggested that at least 15% of GDP must be collected in government revenue to finance basic infrastructure, services, energy and water. Some delegates take the view however that in reality the minimum revenue required is higher than this. Currently tax revenue is below even the minimum 15% threshold in almost 30 of the 75 poorest countries in the world.

The conference noted that all countries must pay attention to the effects of their tax policy and support the aim of creating stronger tax systems. Governments and other interested parties should continue to cooperate in establishing a fair and efficient international tax system including combating tax evasion and tax avoidance.

The opening session noted that creating an efficient tax system means taxing in better ways rather than just imposing more tax.  This means imposing fair taxes by introducing effective laws and policies and at the same time fighting tax evasion and avoidance. For this to be achieved international cooperation is vital. Coordination of technical assistance by the organisations providing it is also vital to ensure that the task of implementing assistance programs is carried out effectively.

The IMF’s Managing Director emphasized the importance of medium term revenue strategies in helping to achieve the SDGs. At the same time the SDGs need to be central to the tax work carried out at an international level. The opportunities for cooperating to achieve the goals are increasing with more than 140 countries participating in the global forum on tax transparency and more than 100 countries involved in the inclusive framework on base erosion and profit shifting (BEPS).

With the enhanced international tax cooperation already occurring through the automatic exchange of information, the inclusive framework on BEPS and the active engagement of the UN Tax Committee of Experts there are new channels for participation by developing countries in discussions on international tax policy. The conference aims to give guidance to countries and other interested parties on better targeting tax efforts so as to achieve the sustainable development goals. The insights shared at the conference will serve as input in forming the future work of the member organisations of the PCT.

The conference will cover topics such as the role of tax in poverty reduction; combating climate change and protecting the environment; mobilizing domestic resources to achieve economic development; formulating tax policy to promote sustainable economic growth; the social aspects of taxation such as income equality and gender equality; investment and trade; and international cooperation and capacity development.