Kathmandu, Nepal, May 23–24, 2025 – Civil society organizations from across Asia convened at a regional seminar titled “Advancing the UN Tax Convention: Asian Perspectives and Strategy,” organized by Tax and Fiscal Justice Asia (TAFJA) in collaboration with the Global Alliance for Tax Justice (GATJ). Held in Kathmandu, Nepal, the forum marked a crucial moment for aligning strategies and uniting voices across Asia to advocate for a fairer international tax system through the development of a UN Tax Convention (UNTC).
Over two full days, the forum explored strategic developments, including Asian countries’ positions in the UNTC negotiation process, political and technical challenges faced by the Global South, and advocacy strategies leading up to key moments such as the Fourth International Conference on Financing for Development (FfD4) and upcoming UNTC negotiations. It also provided a space for collective reflection on regional strength and the role of civil society in shaping a just and democratic tax governance system.
Indonesia Highlights Regional Opportunities in the UN Tax Convention Process
During a session titled “Stock Taking and Temperature Check: Asian Governments’ Responses and Public Opinion in Asia on the UN Tax Convention,” Meliana Lumbantoruan, Deputy Director of PWYP Indonesia and member of TAFJA’s Coordinating Committee, represented Indonesia.
She emphasized that while Indonesia officially supports the UNTC resolution at the UN, political expression of that support remains limited domestically—partly due to diplomatic considerations with OECD member countries and Indonesia’s positioning in global economic forums.
Meliana also underlined the strategic importance of utilizing regional platforms such as the ASEAN Tax Forum—which has so far remained closed—as entry points for mainstreaming tax justice issues in Southeast Asia. She stressed that ASEAN could play a more unified role in the UNTC process, provided member states are willing to open space for dialogue and civil society participation.
According to Meliana, a proactive and progressive regional engagement is essential for strengthening Asia’s position in the global tax architecture, which is currently dominated by the Global North.
Reflections and Lessons from Other Regions
Speakers from Africa, Europe, and Latin America & the Caribbean also shared regional challenges and strategies. African delegates discussed how colonial-era tax systems, unfair bilateral agreements, and imbalanced taxing rights continue to be major obstacles. Several countries in the region have rejected the OECD’s tax model, arguing it reduces source countries’ taxing rights.
From Latin America and the Caribbean, participants noted that tax systems remain highly regressive, relying heavily on value-added taxes (VAT), with widespread incentives and tax leakage. European representatives acknowledged their region’s historical role in shaping today’s unfair global tax system and stressed the need for cross-regional solidarity to reform the global fiscal architecture.
These reflections reinforced the understanding that the push for a UN Tax Convention is not merely a technical effort, but a global political movement for fiscal justice and more equitable power distribution.
Spotlight on Strategic Issues: Extractive Industry, Digital Taxation, and Wealth Tax
In breakout sessions, participants delved into two major themes: tax justice in the extractive and digital economies, and advocacy for wealth taxes and progressive tax reform.
The first discussion addressed how tax avoidance by multinational corporations remains widespread—particularly in the extractive and digital sectors. Indonesian participants highlighted how fiscal incentives for mining companies risk reducing state revenues while contributing to environmental degradation and social harm in affected communities. Nepali participants pointed out that digital companies like Meta have shown reluctance to comply with local tax laws, unlike TikTok, which has formally registered. These examples underscore the urgency of beneficial ownership transparency and fair revenue sharing for impacted communities.
The second discussion emphasized the need for wealth taxes as part of a more progressive tax system. Although the discourse is gaining ground in countries like Pakistan and the Philippines, elite resistance and weak political will continue to impede implementation. Indonesian participants noted that the government still relies heavily on income tax and has not seriously considered wealth taxation within the broader fiscal justice agenda. The discussion also clarified the distinction between wealth taxes and property taxes, and linked the issue to climate justice, gender equality, and public financing.
Strategizing for the UNTC Negotiations: Civil Society’s Collective Action
In closing, the forum agreed on a series of joint strategies for the upcoming UNTC negotiation process. Key initiatives include hosting a regional webinar for G77 countries, drafting civil society inputs for the UN, and launching public campaigns ahead of the next negotiation session.
PWYP Indonesia remains committed to playing an active role—not only through its contributions to international forums such as TAFJA-GATJ, but also by advocating for national policy reforms aligned with fiscal justice, transparency, and accountability.
“Opportunities to reshape the global tax architecture into something more democratic and equitable don’t come often. Asian countries, including Indonesia, must take on a strategic role—not just follow. Now is the time for Asia to lead,” Meliana concluded at the forum’s closing session.