G20: Haddad’s secretary proposes debates on taxation of inheritances and large companies

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Guilherme Mello, Secretary of Economic Policy at the Ministry of Finance, spoke to journalists between group meetings. Guilherme Mello, secretary of Economic Policy at the Ministry of Finance EDU ANDRADE/Ascom/MF The secretary of economic policy at the Ministry of Finance, Guilherme Mello, stated this Wednesday (28) that taxation on large inheritances and the profits of large companies will be topics discussed by the department at the next G20 meetings. Mello spoke to journalists covering the meetings of finance ministers and presidents of the group’s central banks, which are taking place today and tomorrow in São Paulo. Brazil has brought to G20 meetings the need for the group to discuss progressive and equitable taxation from the point of view of companies and individuals, especially the super-rich. The expectation is that the government will bring experts in tax discussions to present their views on the topic at meetings that should take place tomorrow. “Haddad has already mentioned his concern about this issue more than once and brought what we understand to be one of the possible proposals, which concerns taxation on large inheritances”, stated the secretary. According to Mello, there is a current reallocation of wealth around the world by the super-rich, in order to avoid not only taxation on the stock of wealth, but also to avoid taxation on the transmission of wealth to future generations. “Here in Brazil, we recently approved the taxation of closed-end funds and offshore funds, which is already a way of combating this type of tax planning on the part of the super-rich who were passing on their stock of wealth from generation to generation, without never pay taxes on this transmission”, he said. Mello also reinforced that the topic must be debated and deepened by experts, and that the expectation is that the G20 will be a space where it is possible to “build some consensus on this need to initiate an agenda for the formulation” of a taxation system International. Asked whether there is a possibility of an agreement on the taxation of large companies, Mello stated that pillar two — one of the initiatives implemented by the G20 in 2021, which concerns the collection of at least 15% of tax on the income of multinational groups that have an annual global turnover of more than 750 million euros — is already in the process of being implemented in several countries. “It is a priority agenda for all the countries that participate in the G20 and that helped to build this proposal. So it will certainly be one of the topics deeply discussed in the sessions on taxation”, added the secretary. The meeting of G20 finance ministers and central bank presidents begins in São Paulo ‘Billionaires need to pay a fair contribution’ Earlier, Finance Minister Fernando Haddad stated that he intends to discuss a minimum global tax on wealth during the G20. He spoke at the opening of the meetings in São Paulo, together with the president of the Central Bank (BC), Roberto Campos Neto. “Recognizing the advances made in the last decade, we need to admit that we still need to make the world’s billionaires pay their fair share in taxes,” said Haddad. During the speech, the minister stated that there was a “confusion” of global economic integration with the liberalization of markets, the relaxation of labor laws, financial deregulation and the free movement of capital. “The resulting economic crises caused great socioeconomic losses. While hyper-financialization proceeded apace, a complex system […] was structured to offer increasingly elaborate forms of tax evasion to the super-rich,” he said. Since last year, the Minister of Finance has defended the taxation of exclusive funds — also known as “super-rich” funds — and called offshores. At the time, Haddad had stated that the objective was to bring the Brazilian tax system closer to “the most advanced in the world.” Fernando Haddad participates remotely in the panel “The political-economic role in addressing inequalities: national experiences and international cooperation ” in the G20 Diogo Zacarias/MF What is the G20? The Group of 20, or G20, is an organization that brings together Economy ministers and central bank presidents from 19 countries and two regional bodies, the European Union and the African Union. Together, the G20 nations represent about 85% of the entire global economy, more than 75% of world trade and about two-thirds of the world’s population. The G20 has annual rotating presidencies. Brazil is the group’s current president, took office on December 1, 2023 and remains in charge until November 30, 2024. During this period, the country must organize 100 official meetings. The main one will be the Brazil G20 Summit, scheduled for November 18th and 19th, 2024, in Rio de Janeiro. After each Summit, the group publishes a joint statement with conclusions, but countries are under no obligation to include them in their legislation. Furthermore, separate meetings of officials from two countries are an important part of the events. The G20 is made up of the following countries: South Africa; Germany; Saudi Arabia; Argentina; Australia; Brazil; Canada; China; South Korea; U.S; France; India; Indonesia; Italy; Japan; Mexico; UK; Russia; Türkiye; European Union; African Union. The G20 emerged in 1999, after a series of global economic crises in the 1990s. The idea was to bring together leaders to discuss global economic, political and health challenges. At that time, there was a lot of talk about globalization and the importance of a certain proximity to be able to solve problems. The G20 is, in fact, a creation of the G7, which is the group of democratic and industrialized countries, made up of Germany, Canada, the United States, France, Italy, Japan, the United Kingdom and the European Union. The first meeting of G20 leaders took place in 2008. Each year, one of the 19 member countries organizes the event.

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