In depth: Why fair taxation matters in wake of this pandemic

(courtesy: GLOBAL ALLIANCE FOR TAX JUSTICE)

The COVID-19 pandemic exacerbates the wealth redistribution crisis and those hit harder are women and vulnerable groups at the intersections of inequalities. Economic experts from civil society highlight the many alarm bells ringing, that all point to the need for taxation reform to ensure fair distribution of resources. We simply won’t tackle this crisis conjuncture without tax justice.

By Caroline Othim, Global Alliance for Tax Justice and Roosje Saalbrink, Womankind Worldwide as Co-coordinators of the GATJ Tax and Gender Working Group.

How did we get where we are?

The COVID-19 crisis reveals failures of neoliberalism and patriarchy: Evidence shows that the COVID-19 pandemic is deepening pre-existing inequalities and exposing vulnerabilities in our current social, political and economic systems brought about by neoliberalism informed by capitalism, patriarchal and racist systems of discrimination and a history of colonialism. People in all countries at all levels of development are affected but countries in the Global South and particularly women and vulnerable groups are hard hit as governments and health authorities strive to limit widespread infections of COVID-19 and mitigate economic fallout. While neoliberalism and patriarchal norms continue to undermine, subvert and ignore women’s rights.

Industrialised levels of tax evasion and avoidance has left many countries lacking the resources to fund public services. In consequence, healthcare systems in countries in the Global South are also woefully understaffed and underfunded with public healthcare workers missing personal protective equipment like masks, gloves and isolation centres lacking ventilators for critical patients. Millions of people in the Global South also do not have access to adequate healthcare and live in crowded informal settlements where social distancing is impossible, many more also do not have access to clean water to practice hand washing techniques which is now a privilege for some in the society.

“As with the climate crisis, the heaviest COVID-19 burden is loaded on those most vulnerable. The poorest are affected first and worst.”

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