In a new video by the European Commission (EC) about the launch of Finland’s Taxation for Development action programme 2020-2023, the Commissioner for International Partnerships, Jutta Urpilainen, underlines how Finland and the European Union’s vision on taxation aligns. According to Commissioner Urpilainen, it is crucial to put domestic public finances at the heart of development cooperation. Achieving the EC’s goals of inclusive growth, poverty eradication and sustainable development requires partner countries access not only to development aid and support, but also to domestic revenues, investments, and well-working fiscal systems and institutions.
In line with the EC’s objectives, Commissioner Urpilainen envisages three main goals for the years to come:
Addressing inequalities in the public finance management and taxation area more strongly;
Including debt relief to partner countries consequently in development cooperation, since the COVID-19 pandemic has put their public finances in distress and is endangering debt sustainability;
Renewing the political commitment to the Addis Tax Initiative (ATI) beyond 2020, and increasing efforts towards fair tax systems, policy coherence and the fight against illicit financial flows.
A designated Task Force consisting of partner countries, development partners and supporting organisations is currently working on drafting a document that will guide the work of the ATI post-2020. By endorsing this new ATI Outcome Document, which will be presented to the ATI membership in the end of the year, ATI members will re-confirm their commitment to fostering domestic revenue mobilisation in partner countries and will continue to be accountable for making progress towards a new set of commitments in the upcoming years.
To watch the video in full length, please click here.
Image: © European Union, 2020. Screenshot from the video available by the Audiovisual Service of the European Commission.