Promoting sustainable development through equitable and green DRM: insights from the 2024 ATI General Assembly

2024 ATI General Assembly Report

ATI Co-Chairs Toril-Iren Pedersen of Norad and Mari Khurtsidze of Georgia’s Ministry of Finance set an inspiring tone at the opening of the 2024 ATI General Assembly, highlighting the role of the initiative in promoting effective Domestic Revenue Mobilisation (DRM) to bridge development financing gaps and tackle global challenges. They reaffirmed the collective pledge to realising the Addis Ababa Action Agenda (AAAA) and the four commitments outlined in the ATI Declaration 2025.

Following the Co-Chairs, Niels Schütt of the German Federal Ministry for Economic Cooperation and Development (BMZ) praised this year’s theme stressing the significance of Just Transition policies and green tax systems in tackling inequality and climate change. Karolina Leib, representing the European Union, expressed the spirit of the initiative and the rationale of its annual event before giving the floor to the keynote speakers.

“Once again, we come together as a global community of policy makers and practitioners who believe in the critical role tax systems can play for sustainable development”.

 

Karolina Leib, Head of Unit, Macro-Economic analysis, Fiscal Policies & Budget Support, Global partnerships with IFIs, DG INTPA, European Union

Thomas Below, Director of the UNDP Sustainable Finance Hub, delivered a keynote address emphasising the urgency of climate action and the need for transformative changes in international finance. He called for increased ambition, stressing that “climate action is not merely urgent but existential”. Beloe proposed that tax policies should be seamlessly integrated into development frameworks to strengthen climate initiatives and achieve the SDGs, highlighting their critical intersection with the climate, finance, and development agenda.

"Only 15% of the SDGs are currently on track, indicating a critical juncture in the global development landscape".

Thomas Beloe, Director at UNDP Sustainable Finance Hub

Beloe lamented the misallocation of financial resources, especially to fossil fuel subsidies, which evidences a significant misalignment of priorities. Beloe also highlighted the severe financial challenges faced by developing countries, with 52 nations at risk of debt distress and default: “In many low-income countries, debt repayment obligations are 2.4 times higher than governmental investments in social sectors”.

Riikaa Laatu, Financing for Sustainable Development Ambassador at Finland’s Ministry of Foreign Affairs, highlighted the funding gap for the SDGs and emphasised the strategic use of ODA to support private financing and improve tax systems in developing countries. Laatu moved on to emphasising that taxation and good governance go hand in hand and that good governance is also essential to attracting sustainable investment.

"Even if the ODA were to achieve the 0.7% target, it would only cover 5% of the estimated 4 trillion US Dollar financing gap".

Riikka Laatu, Financing for Sustainable Development Ambassador,

Ministry of Foreign Affairs, Finland

The 2024 ATI General Assembly

The 2024 ATI General Assembly featured dynamic exchanges which focused on equitable and sustainable tax systems and their critical role in advancing the SDGs, as well as the imperative to step up international tax cooperation and bridge the development financing gap.

Following the welcome remarks and keynote speeches, day 1 featured a panel discussion on leveraging digitalisation for equitable property taxation. The panel included inputs from the Organisation for Economic Co-Operation and Development (OECD), and the practical experiences of the International Growth Centre Sierra Leone and the Bureau of Local Government Finance of the Philippines’ Department of Finance, and was moderated by the Local Government Revenue Initiative (LoGRI). They explored how property taxation, enhanced through technology and digitalisation, has significant potential to increase the progressivity of the tax system.

Later on, ATI Co-Chairs presented key findings from the 2021/2022 ATI Monitoring Brief, showcasing the progress made against the four ATI commitments and identifying areas for improvement in DRM practices among ATI members.

Also on the first day of the ATI’s annual event, Spotlight session 1 showcased various DRM initiatives from ATI members. These included the International Budget Partnership's work on tax and gender equity in Senegal and Nigeria, Uganda’s Public Expenditure Management Act to minimise wasteful government expenditure, and the OECD Forum on Tax Administration's efforts around digital transformation, including the Digital Transformation Maturity Model (DTMM). Additionally, Oxfam highlighted the global momentum for taxing the wealthy as a means to reduce income inequality, while the West African Tax Administration Forum (WATAF) presented its DRM Framework for member countries, aimed at enhancing strategic revenue collection for national development in the region.

Day 2 of the 2024 General Assembly focused on the ATI Consultative Groups meetings, which play a crucial role in advancing the four ATI Commitments. Consultative Groups convened to discuss the implementation of each commitment, supported by discussions and exchanges with international experts.

During CG1 meeting, the emphasis was on making consumption taxation more progressive, drawing on insights from the recent working paper by de la Feria and Swistak, published by the International Monetary Fund (IMF). CG2 session focused on enhancing DRM cooperation, including South-South and triangular cooperation to support the SDGs, featuring presentations from the South Centre Geneva and the United Nations University World Institute for Development Economics Research (UNU-WIDER). The importance of integrating research and development efforts was highlighted as critical to achieving these goals.

Meanwhile, discussions at CG3 meeting tackled the pressing issue of illicit financial flows (IFFs) through Country-by-Country Reporting (CbCR), with valuable inputs from the Tax Justice Network and the FACT Coalition. Looking ahead, ATI’s future actions include establishing a Tax Expenditure Community of Practice, which stems for a recently concluded series of regional workshops on the subject, as announced at the General Assembly. In the CG4 meeting, stakeholders such as the International Budget Partnership, the House of Representatives of the Philippines, the African Organisation of English-speaking Supreme Audit Institutions (AFROSAI-E), and USAID, engaged in a dynamic discussion on promoting tax compliance through improved accountability.  The dialogue underscored the pivotal role of parliamentary oversight and civil society engagement in building trust and efficiency in tax administration.

Spotlight session 2 on the second day of the General Assembly featured presentations on successful tax reforms, DRM support projects, and the challenges and lessons learned from collaborating with public agencies and partners to advance progressive tax reforms.

Bangladesh’s presentation focused on their journey towards, and lessons learned from, producing and publishing their first Tax Expenditure Report in November 2023. USAID’s programme in Ugandan cities demonstrated significant revenue increases through strengthened local governance and transparency while Expertise France’s DATAFID project highlighted the transformative impact of data-driven approaches in enhancing revenue administration. Dr. Richard Murphy from the University of Sheffield introduced the GIFT Tax Transparency Principles. These principles are grounded in the belief that tax transparency is a fundamental public good.

The second day of discussions at the 2024 ATI General Assembly concluded with a side event focused on gender and tax expenditures, highlighting how these allocations can both reveal and reinforce gender biases that hinder progress gender equality. Moderated by the Council on Economic Policies (CEP), the event featured insights from the International Centre for Tax and Development (ICTD), alongside practical experiences from Maldives and Canada’s Department of Finance. This comparative perspective not only enriched the dialogue on integrating gender perspectives into tax policy but also underscored the need of tailoring tax policies to specific contexts. You can access detailed insights on the discussion in this article.

Day 3 delved into the topic of environmental taxation and explored  prospects for the Addis Tax Initiative in anticipation of the upcoming Fourth International Conference on Financing for Development (FFD4). The panel discussion titled "The Triple Dividend” featured tax officers and experts from the World Bank and academia, who explored how environmental taxes can generate revenue, promote eco-friendly practices, and address social inequities. Case studies, such as Kenya's experience with progressive carbon pricing and Israel's regressive plastic tax, illustrated the importance of considering distributional effects.

Amidst the significant challenges in closing the SDG financing gaps and the forthcoming discussions at FFD4, the final session of the ATI’s annual event offered members a platform to reflect on the future role of the partnership in advancing sustainable development financing through fair and transparent DRM, and identify areas of potential improvement. The session featured inputs form the African Tax Administration Forum (ATAF), the UK’s Foreign Commonwealth and Development Office (FCDO), the Center for Global Development, the United Nations Department of Economic and Social Affairs (UNDESA), and Ghana’s Ministry of Finance. With no objections from members to the proposed motion on continuing the ATI post-2025, a task force will be established to define a new mandate for the initiative. This decision underscores the pivotal role of the ATI in fostering horizontal knowledge exchange, DRM capacity building, dialogue, and peer learning within the realm of global tax cooperation towards sustainable development.

The General Assembly of the Addis Tax Initiative once again demonstrated the uniqueness of the partnership. The annual forum brought together tax officers, representatives of Ministries of Finance, revenue administrations, and government agencies, Members of Parliament, experts from international organisations, academia, and civil society organisations (CSOs). This diverse assembly served as a platform for the horizontal exchange of experiences in DRM policy and implementation for sustainable development. The flagship event of the ATI provided valuable insights into the discussion on bridging development financing gaps and addressing global challenges through equitable and sustainable tax systems. In addition, it underscored the importance of enhancing international tax cooperation to effectively achieve these goals.

As the global community prepares for the Fourth International Conference on Financing for Development in 2025, the ATI reaffirms its commitment to supporting member countries in enhancing DRM capacities and promoting fair and efficient tax systems that work for people and advance the SDGs.

About the ATI:

The Addis Tax Initiative (ATI) is a collaborative platform of partner countries, development partners, and supporting organisations committed to advancing international tax cooperation and supporting sustainable development financing globally.

Emerging from the Third International Conference on Financing for Development in Addis Ababa in July 2015, the ATI facilitates dialogue, technical assistance, and capacity building initiatives to strengthen member countries' tax systems that work for people and advance the SDGs.

For media inquiries, please contact: secretariat@taxcompact.net

Resources:

Check out the full programme of the 2024 ATI General Assembly, including session descriptions and speakers’ information.

2021/2022 ATI Monitoring Brief.

News article on the side event Exploring gender dimensions in tax expenditures: advancing policy debates and informed decision-making.

2024 ATI General Assembly Report.

All presentations delivered at the 2024 ATI General Assembly will be available soon.