The world's 20 largest economies (G20) reached an agreement on Thursday to work together to ensure effective taxation of ultra-high net worth individuals. This statement seeks to balance national sovereignty with tax cooperation.
The statement, set to be released on Friday, is a priority for Brazil, which holds the G20 presidency this year. Brazilian leader Lula, a former factory worker, has pushed for the inclusion of a "billionaires' tax" in the G20 agenda.
According to the G20 tax statement seen by Reuters: "Respecting tax sovereignty, we will cooperate to ensure effective taxation of ultra-high net worth individuals."
"Cooperation may involve sharing best practices, encouraging discussions around tax principles, and developing anti-avoidance mechanisms, including addressing potentially harmful tax practices," the statement said.
Brazil has been pushing for a proposal to impose a 2% wealth tax on fortunes exceeding $1 billion, which is expected to raise up to $250 billion annually from 3,000 billionaires.
Brazil's Finance Minister Fernando Haddad stated: "What starts today is a broader process that requires the involvement of academia, scholars, and experienced international organizations such as the OECD and the UN."
Other G20 members have expressed support but also noted the potential difficulties in implementing the agreement.
