The Director General of the International Monetary Fund, the IMF, characterized the group’s vision of progressive taxation as timely and welcome.
The G20 countries have agreed to work together to make the super-rich pay their taxes. The matter will be clarified in a statement approved after the meeting of finance ministers of the G20 countries held in Rio de Janeiro, Brazil, on Friday.
However, the United States and Germany rejected a global agreement to tax billionaires. The initiative was supported by France, Spain, South Africa and the African Union, among others.
According to the statement, the group respects the tax sovereignty of countries but strives to cooperate to ensure effective taxation of extremely rich people.
– Wealth and income differences weaken economic growth and social cohesion and worsen social vulnerabilities, the statement said.
19 countries and the European and African Unions are represented in the G20 group.
Lula wanted a minimum tax for the wealthy
Leading the group this year is the President of Brazil Luiz Inacio Lula da Silva wanted a minimum tax for the very wealthy. However, the statement of the G20 countries represents a compromise on the issue that divided the member countries.
Brazilian Finance Minister Fernando Haddad according to it is important from a moral point of view that the richest countries recognize the problem, which is progressive taxation for the poor but not for the rich.
Director General of the International Monetary Fund (IMF). Kristalina Georgieva described the group’s Friday statement positively.
– The joint vision of the G20 ministers on progressive taxation is timely and welcome, he said in his statement.
Rio de Janeiro will also host the November summit of the G20 group of major economies. India handed over the rotating G20 chairmanship to Brazil in December. Among other things, Brazil’s goals have been to strengthen the voice of the global south and combat inequality and climate change.
27/07/2024 at 3:35 updated news throughout.