G20 countries have pledged cooperation to ensure wealthier individuals are more highly taxed, according to a statement released after a finance ministers meeting in Rio de Janeiro.
The declaration, published by the Brazilian G20 presidency, states: “In full respect of tax sovereignty, we will strive to cooperate to ensure highly wealthy people are effectively taxed”.
The International Monetary Fund’s (IMF) Managing Director welcomed the G20’s position towards “fiscal justice”, deeming the decision to cooperate on taxing the richest “timely and welcome.”
IMF boss Kristalina Georgieva stated that the G20 ministers’ collective vision for progressive taxation was both timely and popular. She added: “the need to rebuild fiscal reserves while addressing social and developmental needs involves tough decisions in many countries”. Georgieva believes that promoting fiscal justice aids in the social acceptance of these decisions.
