Excellencies, Distinguished Delegates,

I have the honor to deliver this statement on behalf of the Group of 77 and China.

At the outset, the Group expresses its appreciation to the President of the Economic and Social Council for convening this Special Meeting on International Cooperation in Tax Matters. The Group recognizes the importance of this platform in advancing inclusive and effective tax cooperation, particularly in the context of the ongoing efforts to enhance the mobilization of domestic resources to achieve Sustainable Development.

The Group notes with concern that the financing gap for the SDGs remains substantial. In this regard, we emphasize that international tax cooperation is a fundamental component of the international financing architecture, as it enables developing countries to strengthen domestic resource mobilization and address illicit financial flows, tax avoidance, and tax evasion.

The Group underscores that discussions on international tax cooperation must be inclusive and transparent, recognizing the role of the United Nations, where all Member States participate on an equal footing. In this regard, we welcome the convening of this Special Meeting.

The Group recalls the convening of the Intergovernmental Negotiations Committee and the substantive discussions initiated on the United Nations Framework Convention on International Tax Cooperation and its two early Protocols. We call upon all Member States to engage constructively in an inclusive and effective negotiating process, aimed at strengthening international tax cooperation, ensuring fair and equitable allocation of taxing rights, and supporting the sustainable development efforts of developing countries.

The Group reaffirms the need to strengthen international cooperation on tax matters to to make it inclusive and effective and takes note of the work of the Committee of Experts in Tax Matters.

The G77 and China emphasizes that international tax rules should support, rather than hinder, the ability of developing countries to mobilize domestic resources. In this regard, the Group underlines that it is counterproductive to highlight the importance of domestic resource mobilization in developing countries, while at the same time not robustly tackle areas that impede their ability to capture necessary resources.

Furthermore, Official Development Assistance in support of domestic resource mobilization remains low. In this regard, the Group reiterates its call on the developed countries to continue to increase their contributions to revenue mobilization capacity building of the developing countries.

The taxation of cross-border services, the digital economy, and the prevention of profit shifting by multinational enterprises are relevant aspects for the Group. We stress the importance of capacity-building and technical assistance to help developing countries implement effective tax policies and administration.

In conclusion, the Group of 77 and China reaffirms its strong commitment to strengthening multilateral cooperation in tax matters, as critical to the achievement of sustainable development. We will continue to advocate for an inclusive and effective international tax system that reflects the development needs of all countries and contributes to a more just and sustainable global economy.

I thank you.