The Minister of Finance, José Antonio Ocampomade a speech at the event ‘The Voice of the Global South’ on the challenges that developing countries have and that must be urgently intervened.
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The minister made a call to work for an international tax system “inclusive, sustainable and equitable, which allows financing the recovery and facing the price crisis that the Global South is going through“.
In the intervention, of the event that takes place in India, Ocampo assured that it is vital to work to improve access to finance for emerging and developing economies, which has been affected by energy and food prices, rising interest rates and volatile capital flows.
Along with this, he highlighted three important elements to improve and that there is a precise approach to the problems of emerging economies and developing countries.
“First, the reallocation of tax rights. Inclusive framework countries will be asked to sign a convention to implement Pillar One, which does not address the current bias in tax entitlements towards advanced economies (…) There is a need to build on the current outcome towards reallocation based in a comprehensive fraction portion of all profits of multinationalsOcampo said.
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He also assured that efforts should be made to limit aggressive competition between countries in order to force them to rethink how to attract foreign direct investment. “This is particularly important in the context of the need to fight climate change, curb harmful emissions and promote green technologies,” she said.
Regarding taxes on wealth and offshore income, Ocampo said that there is still a lot to do. Between it, increase the transparency of the owners of wealth and mitigate competition between countries to attract wealthy individuals and investments.
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“Latin America and the Caribbean will work this year to propose an agenda of urgent issues that still need to be resolved in the international tax field through a ministerial meeting to be held in Cartagena this 2023”, informed the Minister.
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