for instance, that a failure to mobilize domestic resources effectively may be excused by sound choices
being made in spending. A State which would be increasing spending on social policies (for social
security, food, health, education and housing), but that would be doing so relying on a highly
regressive taxation policy, may be found in violation of its obligations under the Covenant. To
illustrate, consider the assessment this author made in his official capacity as the Special Rapporteur
on the right to food following his mission to Brazil in 2009. While praising the country for having
consistently increased spending on social priority areas, the assessment added the following cautionary
note93:
The tax structure in Brazil remains highly regressive. Tax rates are high for goods and services
and low for income and property, bringing about very inequitable outcomes. According to one
estimate, families with an income amounting to less than two minimum wages pay an average
of 46 per cent of their income in indirect taxes, while families earning over 30 times the
minimum wage pay around 16 per cent in indirect taxes. A recent report by the Tax Services
confirms the very low levels of property taxes. In particular, the rural territorial tax collected, in
2008, a mere R$ 416 million (US$ 239 million) nationwide. As a percentage of GDP, this
amounts to 0.01 per cent and, as a percentage of total taxation, the tax accounts for only 0.04
per cent. Given the very high level of land concentration and the large incomes generated by the
agricultural sector, this is highly regressive. In contrast, taxes on goods and services, as well as
social contributions to pensions and social security accounted for the lion’s share of
Government income: over 70 per cent in 2008 [see the figure below]. The Special Rapporteur
concludes that, while the social programmes developed under the “Zero Hunger” strategy are
impressive in scope, they are essentially funded by the very persons whom they seek to benefit,
as the regressive system of taxation seriously limits the redistributive impact of the
programmes. Only by introducing a tax reform that would reverse the current situation could
Brazil claim to be seeking to realize the right to adequate food by taking steps to the maximum
of its available resources.
Government Revenue in 2008 by Source of Taxation
Property
3%
Other
3%
Financial
transactions
2%
Income
21%
Goods & services
48%
Salaries
23%
Figure 2: Government Revenue in 2008 by Source of Taxation, 2009 Mission to Brazil by the Special
Rapporteur on the right to food
The opposite is equally true, of course: a State that would have a highly progressive tax structure, but
that would nevertheless maintain a low level of social spending, would not be acting consistent with
its duties under the Covenant. Dedicating the "maximum available resources" to the realization of the
rights of the Covenant means both mobilizing sufficient resources and using such resources as
effectively as possible, in order to maximize the contribution of public investment to the fulfilment of
economic, social and cultural rights. It may be tempting to think that a State making a smart use of its
resources could be excused for maintaining a regressive tax structure or, conversely, that a State
93
Report of the Special Rapporteur on the right to food, Olivier De Schutter, to the thirteenth session of the Human Rights
Council, Addendum: Mission to Brazil (12-18 October 2009) (A/HRC/13/33/Add.6), para. 36 (footnotes omitted).
21
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