Fair Trade Tax

Change the world’s wealth distribution

ABOUT THE FAIR TRADE TAX ASSOCIATION

Our goal is to promote an international tax system, one that fairly shares multinational tax revenue from agricultural trade between exporting countries and importing countries. Our innovative approach offers a new way of allocating the corporate tax basis according to the time spent in each step of the supply chain. Our aim is to allow exporting countries to tax a larger part of multinationals profit. It is not to increase the multinationals tax burden.

INEQUALITIES IN FOOD PRODUCTION VALUE CHAINS

At the moment, wealth sharing between food product exporting and importing countries does not reflect the time spent by the agricultural producers in cultivating their crops compared to the time spent by the food companies selling them. Those who work the longest, receive the least.

The value chain distribution of Ethiopia's specialty coffees sales illustrates the issue. Only around 5% of the retail price stays in producing country, while the consuming countries receive about 75%. The coffee growers' share is only 2.8% of the retail price.

Comparing time spent growing food to the short time required to distribute and sell it, it becomes clear that the current state of agricultural production value distribution needs to change for the better.

TAXES ARE A POWERFUL TOOL FOR THE REGULATION OF INEQUALITIES: SET WRONGLY AND THEY CREATE AND DEEPEN INJUSTICE, SET FAIRLY AND THEY RIGHT A WRONG.

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