Leaders belonging to various civil society organizations call on the Department of Finance to take this opportune time for the Philippines to play its role in remaking global rules for a tax reform that would equitably raise revenues to guarantee peoples’ rights to public services and a rapid, just transition to renewable energy systems through progressive taxation.

This comes after another historic tax resolution was adopted by UN Member States at the UN General Assembly on December 22, 2023 which the Philippines voted for.

The UN General Assembly resolution 78/230 or the “Promotion of inclusive and effective tax cooperation” fast tracks progress towards implementing the earlier UN resolution adopted by consensus last year. It sets the terms for political negotiations toward a UN Framework Convention that is expected to effectively address cross-border tax abuses and illicit financial flows and guarantee fair allocation of taxing rights among countries. Negotiations on a UN Tax Convention will begin early this year and is expected to conclude by August.  

In an open letter addressed to newly appointed DOF Secretary Ralph Recto, as penned by Atty. Aaron Pedrosa of SANLAKAS, Rovik Obanil, Freedom from Debt Coalition, Atty. Luke Espiritu, Bukluran ng Manggagawang Pilipino, and Oyette Zacate, Oriang Women’s Movement, the leaders, with reference to the UN Tax Convention and the OECD/G20 BEPS Framework, urge the department as well as the Philippine government, “to heed the voices of many leaders of Global South countries, independent experts and a multitude of CSOs who have warned against the risks and pitfalls of signing on to the OECD/G20 BEPS Framework. They say the package is nothing more than a “Tax Deal of the Rich,” and offers no real benefits to Global South countries.”

They state the Philippines should rescind its decision in joining the OECD/G20 BEPS Framework and instead work towards negotiating the establishment of a genuinely inclusive, transparent, democratic intergovernmental UN Tax Body through a UN Framework convention on tax.

As against the TRAIN and CREATE laws and for taxing the Wealth of the Wealthiest, the group calls for the government to “immediately take decisive actions to stop tax abuses by corporations and the elite, step up measures to end illicit financial flows; end regressive tax policies that shift the burden of raising domestic revenues to the poor, and instead fairly and sharply tax the wealth and income of corporations and the wealthiest, and the immediate adoption of a wealth tax to fund public services, climate actions, and energy transformation and just transition.”

The letter also demands an “end to wasteful and harmful tax incentives as well as tax and labor abuses especially in the extractive industry and for an increase in allocation of tax revenues for public services and not debt service payments to ensure that taxes are used to fund peoples’ needs.”

They urge the Philippine government to work towards the building of a framework convention on tax that works for people of the planet.

“Let us work with state parties like the Africa Group and Group of 77 AND China who have been pushing for democratic, inclusive and transparent global tax governance. For our part, we will continue to push for reforms, including breakthroughs in progressive taxation on the national tax policy front,” the letter concludes.

Signing of the letter was held following a press briefing on the UN Tax Convention negotiations and the Philippine Tax Justice campaigns. The briefing, held February 1, 2024 in Quezon City, was organized by the Asian Peoples’ Movement on Debt and Development with the Bukluran ng Manggagawang Pilipino (BMP), Freedom from Debt Coalition Philippines, Oriang Women’s Movement, and Sanlakas.