GLOBAL & PUBLIC FINANCE
In many developing countries, transnational corporations (TNCs) enjoy more rights than citizens. This is certainly the case when it comes to taxes. Where development agenda hinge in large part on attracting foreign direct investments (FDIs), governments offer a range of substantial profit-based tax incentives to prospective investors and enter into treaties advantageous to corporations.
Of late, there has been increasing interest in mobilizing development finance in light of the failure of aid, loans and other financial transfers from North to South to realize human development goals, including poverty reduction.
One of the forms of pressure imposed by North governments and international financial institutions on developing countries to attract prospective investors is to enter into various trade agreements and tax treaties.
The Illegitimacy of Debt
The debt problem must be understood in its historical political and economic context. And, such an understanding points to the illegitimacy of the debt as a whole and the system that has spawned it.
On Tax Justice
Taxes and taxation involve people's resources. Peoples' movements and citizens groups should be concerned about this issue and the questions of who should be taxed, how taxation should be done, and how revenues from taxes should be spent.
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The state's right to tax goes hand in hand with the state's obligations to protect and uphold the rights of its citizens, promote equity and justice, provide for essential services and, be transparent and democratic in formulation and implementation of budget, spending and policies.
