As the global consensus builds around the need for billionaires to pay their fair share, Congress leader Jairam Ramesh in a post in X sought PM Narendra's Modi's position on such a move.
"India has 167 dollar billionaires. A 2% wealth tax would raise 1.5 lakh crores each year - almost 0.5% of our GDP. This could pay for schools, hospitals, renewable energy, and many more essential investments in the future of our country," he wrote.
Initiated by Brazil, which currently holds the G20 Presidency, and supported by France, Spain, South Africa, and Germany, this move is set to reshape the landscape of global taxation. "What will be India's position when it will be discussed at the G-20 meet in Rio de Janeiro later this month?," Ramesh asked ahead of Modi 3.0's budget which will be announced on July 23.
The tax proposal has received backing from former presidents and prime ministers worldwide. In an open letter to the leaders of the G20, they describe this as a unique political opportunity. The letter states, "A global deal to tax the ultra-rich would be a shot in the arm for multilateralism: proving that governments can come together for the common good."
Brazil’s proposal, designed by French economist Gabriel Zucman from the EU Tax Observatory, suggests a 2% annual levy on fortunes exceeding $1 billion. This could potentially generate up to $250 billion annually from about 3,000 individuals globally.
While the recent G7 communiqué expressed ongoing collaboration with Brazil to enhance international cooperation for equitable taxation, not all nations are on board. German Finance Minister Christian Lindner has expressed skepticism, and U.S. Treasury Secretary Janet Yellen has indicated that the United States might not support redistributing tax proceeds among countries.
Despite these objections, the initiative has found support from France, Spain, Colombia, Belgium, the African Union, and South Africa, which is poised to assume the G20 presidency next year.