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CESCR Recognises Tax Justice as a Human Rights Obligation
In a landmark development, the Committee on Economic, Social and Cultural Rights (CESCR) issued a historic statement on 28 February, explicitly recognising that states must tackle inequality and guarantee rights through fair tax policies. This long-awaited announcement sets a new global standard, affirming that taxation is a matter of human rights and social justice.
For the first time, CESCR has made it clear that states have a legal duty to implement progressive tax systems, eliminate tax privileges and avoid regressive taxes that disproportionately impact those with the least resources. The statement provides an ambitious framework for governments to reshape fiscal policy in line with their obligations under the International Covenant on Economic, Social and Cultural Rights (ICESCR).
In addition to national tax responsibilities, the statement introduces a groundbreaking recognition: international financial institutions (IFIs) also have human rights obligations. The Committee asserts that IFIs must assess how their recommendations affect states' ability to finance rights, particularly in the context of heavily indebted countries. This places accountability on global financial institutions to consider human rights impacts in their policy advice.
This recognition is the result of years of advocacy by civil society organisations. The statement draws upon key principles developed by the Initiative for Human Rights in Fiscal Policy, a coalition of organisations that works to articulate the human rights implications of taxation. The Global Initiative for Economic, Social and Cultural Rights is a member of this initiative, contributing to the push for fairer and rights-based fiscal policies.
The CESCR’s declaration marks a turning point in the legal and political conversation surrounding taxation and rights. However, these new standards need to translate into concrete action. Governments must take the next steps to implement tax justice measures that secure economic, social and cultural rights for all.
Read the statement here.
