G20: Global taxation for the rich will be discussed this Thursday – 02/28/2024 – Market

The Ministry of Finance will begin discussing this Thursday morning (29) with other delegations an initial rate for the global taxation proposal defended this Wednesday (28) by the head of the ministry, Fernando Haddad, in his opening speech of the 1st meeting of ministers and presidents of G20 Central Banks.

The information was given by the deputy executive secretary of Finance, Rafael Dubeux, who is part of Brazil’s delegation at the G20.

Upon leaving the event, the department’s executive secretary, Dario Durigan, told journalists that there is still no defined rate and commented that the issue could face resistance within the group that brings together the 20 largest economies in the world.

“I don’t have any proposal for an effective rate. It is a concept. The dynamics of international blocs require more time. So it is necessary to galvanize support for the idea, the concept, and from there carry out impact studies to see what is possible be accepted politically by several countries.”

“The G20 is a complex forum, we have different perspectives, countries with different interests, we know that. [Mas] We cannot avoid proposing an instrument. The world will experience this need, it experienced the pandemic, it may experience others, we have seen climate change, reaction and response mechanisms will be imposed on us and the world needs to coordinate”, said Durigan.

He cited that Brazil’s proposal acts as a third pillar of the OECD (Organization for Economic Cooperation and Development) in terms of global taxation.

So far, the entity has developed two pillars; the first being to distribute taxing rights on the profits of multinationals between countries. The second establishes a global minimum taxation for large companies, such as big techs.

“Of course there may be a reaction, but I would say that we have already talked about [reuniões] bilateral, in addition to the forum, that European countries already support us in general terms with this proposal”, he added.

For the Brazilian team’s proposal to be included in the final communiqué of the finance ministers’ meeting, it would be necessary for all parties to accept its content. Hence the need for other countries to agree, at least in part, with the proposal.

“The statement is born from this economic consensus [combater desigualdade social e defender a transformação ecológica]. We try to avoid other discussions that do not contribute to evolution. And this is a topic that would not initially be included in the statement. The theme that would be the communiqué has been constructed in a simple, direct way, with the countries”, stated Durigan.

This Wednesday, French minister Bruno Le Maire defended the proposal to tax the super-rich, according to him, to prevent tax evasion.

“We are fully committed to accelerating the process to implement at the international level at the OECD level, at the G20 level, and I hope that we also have all European countries, a minimum taxation on individuals to combat any type of tax optimization around the world” , he stated this Wednesday in a conversation with journalists.

A Sheet Norwegian Finance Minister Trygve Vedum also defended the idea of ​​creating a global tax rate. His country is one of the few that currently tax the net fortunes of individuals (today, at 1.1%).

“Haddad used the word ‘super rich’ when he gave his speech at the G20 event today. And there we have common goals because it is extremely important for the Nordic welfare system that everyone contributes, including the super rich,” he said .