India Champions Global South Interests in UN-led International Tax Framework

During the recent session of the UN Ad Hoc Committee on International Tax Cooperation, India strongly advocated for a global tax framework that is inclusive and representative of the interests of the Global South. This intervention comes at a critical juncture as the international community seeks to address the complexities of taxing the digital economy and multinational corporations (MNCs). Historically, international tax rules have been largely shaped by the Organisation for Economic Co-operation and Development (OECD), often perceived as representing the interests of developed economies. India’s stance at the UN highlights a growing demand among developing nations for a more democratic and transparent process. India emphasized that any new framework must ensure fair taxing rights, particularly for 'market jurisdictions'—countries where digital services are consumed but where MNCs may lack a physical presence. This is essential to prevent Base Erosion and Profit Shifting (BEPS), which significantly drains the revenues of developing nations.