“With full respect for fiscal sovereignty, we will seek to cooperate to ensure that very high income individuals are effectively taxed. Cooperation could include the exchange of best practices, the encouragement of debates around tax principles and the creation of anti-avoidance mechanisms, in particular to examine potentially harmful tax practices”, we can read in the Final Declaration published Monday evening .
This point, which aroused apprehensions in particular from Argentina under the presidency of Javier Milei, was maintained in the final version of the document, thus confirming a rare consensus among the main world economies.
In response, the NGO Oxfam congratulated Brazil for using its G20 presidency to meet global aspirations to combat extreme inequality, hunger and climate collapse, particularly through the adoption of measures aimed at taxing the wealthiest.
“Brazil has led the way towards a more equitable and resilient world, and it is now up to other nations to follow this example at this critical moment,” said the NGO, which expects concrete changes.
This means, according to her, establishing a global standard setting tax rates high enough to drastically reduce inequality and mobilize the trillions of dollars needed to tackle the climate crisis and poverty.
“These advances in international taxation also imply that G20 governments should support a financing target of $5,000 billion for the fight against climate change at COP29 in Baku. How can they claim that climate justice is out of reach when a deal to raise trillions by taxing the ultra-rich is now on the table? », enthused Viviana Santiago, executive director of Oxfam Brazil.
The Brazilian Ministry of Finance estimates that a 2% tax on the wealth of the richest could generate up to 250 billion dollars per year, funds which would be used to reduce inequalities and finance the ecological transition. This group, estimated at around 3,000 individuals, holds a total wealth of around 15,000 billion dollars, more than the GDP of many countries.
However, the G20 Declaration remains evasive on setting a specific tax rate.
It also addresses the worsening global food crisis, with an estimated 733 million people affected by hunger in 2023, with women and children most vulnerable.
Faced with this situation, the G20 calls for more resolute collective action, with the launch of the Global Alliance against Hunger and Poverty, a Brazilian initiative which already has 148 founding members, including 82 countries, the European Union, the African Union, 24 international organizations, 9 financial institutions and 31 philanthropic foundations and NGOs.
“The world produces enough food to eradicate hunger. What is missing is the political will to ensure equitable access to this food,” highlights the document, which also emphasizes the importance of knowledge sharing and financing to support ambitious poverty reduction programs.
As Brazil concludes its rotating presidency of the G20 with this summit in Rio, it will hand over to South Africa for next year.
During his mandate, Brazil focused on three priorities: the fight against hunger, poverty and inequality; sustainability, climate change and just transition; and finally the reform of global governance.
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