On 5 August 2026, during the fifth negotiation session of the United Nations Framework Convention on International Tax Cooperation in New York, LDC Watch/SAAPE submitted a memorandum to Nepal’s Finance Minister, urging the government to actively advocate for the interests of Least Developed Countries (LDCs) and the Global South in shaping a fairer international tax system. The submission comes at a crucial time as negotiations move toward drafting treaty provisions on tax base erosion, the allocation of taxing rights, and sustainable development. CSOs highlighted that illicit financial flows, profit shifting, corporate tax avoidance, and the erosion of Nepal’s tax base continue to deprive the country of vital resources needed for public services, social protection, infrastructure, climate action, and sustainable development.
For the global South, the UN Tax Convention presents a historic opportunity to establish a more inclusive, democratic, and equitable global tax framework that gives developing countries an equal voice in decision-making. The memorandum called for inclusive global tax governance, fair allocation of taxing rights, equitable taxation of multinational enterprises, effective taxation of high-net-worth individuals, stronger transparency measures to combat illicit financial flows, and the integration of tax and climate justice principles. SAAPE emphasized that fairer global tax rules would help Nepal mobilize greater domestic revenues, strengthen fiscal sovereignty, reduce dependence on external financing, and secure the resources necessary to build a more resilient, inclusive, and prosperous economy.