G20 countries commit to cooperative tax efforts for wealthy

7/28/2024 5:15:09 AM

(MENAFN) At the conclusion of a meeting of finance ministers in Rio de Janeiro, the G20 nations reached an agreement to collaboratively ensure the taxation of the wealthiest individuals, though they stopped short of establishing a unified global tax system. The declaration, issued by Brazil, which currently holds the group's rotating presidency, emphasized the importance of respecting national tax sovereignty while working together to implement effective taxation for high net worth individuals. The finance ministers underscored that wealth and income inequality hinder economic growth, disrupt social cohesion, and heighten social vulnerabilities. They called for the adoption of effective, fair, and progressive tax policies to address these issues.

Brazilian Finance Minister Fernando Haddad highlighted the moral imperative for the world's 20 richest countries to address the disparity in progressive taxation that burdens the poor more than the rich. This sentiment was echoed by Kristalina Georgieva, Managing Director of the International Monetary Fund, who welcomed the G20's commitment to financial justice. Georgieva remarked that the shared vision on progressive taxation among the G20 ministers was both timely and necessary, given the pressing need to replenish fiscal resources while addressing social and developmental needs, which requires making challenging decisions in many countries. She added that enhancing tax justice would help garner public support for these decisions.

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