Why is it in the news?
- India voted in favour of a UNGA resolution titled “Promotion of Inclusive and Effective International Tax Cooperation at the United Nations,” introduced by Nigeria.
More about the news
- The resolution’s objective is to establish a member state-led, open-ended intergovernmental ad hoc committee to develop a comprehensive UN Tax Convention.
- The goal is to prioritize international tax cooperation and finalize the UN Tax Convention by June 2025.
- The move addresses various global taxation issues, including aggressive tax avoidance, illicit financial flows, recovery of stolen assets, and fair taxation of the digital economy.
- The resolution aims to prevent over $480 billion in annual tax income loss due to international tax abuse.
- It seeks to end the monopoly of the Organisation for Economic Cooperation and Development (OECD) in tax-related policy and allows all countries to participate in developing rules while respecting tax sovereignty.
- The resolution promotes cooperation to establish a fair, sustainable, and modern international tax system.
· The UN General Assembly (UNGA) is the primary policy-making organ of the United Nations, providing a forum for multilateral discussions on international issues.
· Each of the 193 Member States of the United Nations has an equal vote in the UNGA, where key decisions are made, including appointing the Secretary-General, electing non-permanent members of the Security Council, and approving the UN budget.