Brazil’s Finance Minister Fernando Haddad, left, and Central Bank Governor Roberto Campos Neto, speak during a G20 news conference at the World Bank/IMF Annual Meetings in Washington, Thursday, Oct. 24, 2024. (AP Photo/Jose Luis Magana)
Washington, United States — G20 finance ministers meeting in Washington on Thursday reaffirmed their desire to cooperate on taxing the super-rich, before a summit next month where taxes are expected to be a top priority.
“With full respect to tax sovereignty, we look forward to discussing potential areas of cooperation to ensure that ultra-high-net-worth individuals are effectively taxed,” the G20 group of nations wrote in a communique after discussions during the International Monetary Fund and World Bank annual meetings.
“We will continue to work together towards a fairer, more inclusive, stable, and efficient international tax system fit for the 21st century, restating our commitment to tax transparency and fostering global dialogue on effective taxation, including of ultra-high-net-worth individuals,” the communique added.
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G20 members were unable to agree on the introduction of a global minimum tax on the super-rich earlier this year, as called for by Brazil, which holds the presidency of the forum this year.
But at a previous meeting of finance ministers in July, the G20 pledged to cooperate to ensure that the very wealthiest are taxed more heavily, in the name of fighting inequality.
Instead of creating a minimum tax on the wealthiest, which was supported by Brazil’s left-wing president, Luiz Inacio Lula da Silva, a compromise was reached to encourage everyone to tax them more.
The charity Oxfam International reacted positively to the news on Thursday that the language on cooperation had not been watered down.
“Today’s G20 Ministerial reflects an emergent shift in consensus from the world’s largest economies to reduce extreme inequality by ensuring the ultra-rich pay their fair share,” Oxfam International tax lead Susana Ruiz said in a statement shared with AFP.
The G20 heads of state and government must give a final endorsement to the commitment at a forthcoming summit in Rio de Janeiro in mid-November, just after the upcoming US presidential election.