Global Tax Reform Summit Calls for Fairer System as UN Convention Looms

Global Tax Reform Summit Calls for Fairer System as UN Convention Looms. Image for illustration purposes only, generated with AI.

International tax experts, activists, and policymakers gathered at the International Tax Reform Summit in Johannesburg this week to push for a more equitable global tax regime, amid growing criticism that current policies favor wealthy nations and multinational corporations.

Key discussions centered on the upcoming United Nations Tax Convention and the global minimum corporate tax rate of 15%, which critics argue is too low to curb profit shifting and illicit financial flows draining resources from developing nations.

Outdated Rules, Unequal Benefits

Speakers at the summit highlighted how existing tax structures—many established a century ago during colonial rule—disproportionately benefit capital-exporting nations like those in Europe, North America, and Australia.

“The current tax rules were designed to favor countries where multinational corporations are headquartered,” said a representative from the Union Federation Safu, emphasizing that African nations and the Global South lose billions annually due to tax evasion and profit shifting.

15% Minimum Tax “Way Too Low”

While the OECD-led global minimum tax deal aims to reduce tax competition between countries, activists argue the 15% rate is insufficient.

“We believe 15% is way too low and just another gateway for corporations to keep profiting without contributing to Africa’s development—or any other country’s,” said Safu. Reports from the African Union and UN Tax Committee (ONTAC) estimate that illicit financial flows, including trade mispricing, cost Africa billions annually.

South Africa’s Pivotal Role

With South Africa currently holding the G20 presidency and playing a key role in BRICS and UN tax negotiations, delegates see an opportunity to push for progressive reforms.

“This year is crucial for South Africa to advance fair tax policies, ensuring multinationals and the wealthy pay their fair share,” said a summit organizer.

Domestic Tax Battles Mirror Global Struggles

The summit coincided with South Africa’s national budget debates, where a rejected VAT increase led to higher fuel levies—a move criticized for disproportionately affecting the poor.

As the summit concludes, calls grow louder for stronger international cooperation to combat tax evasion, close loopholes, and ensure developing nations benefit from global tax reforms.

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