Finance ministers from G20 member states announced their decision to cooperate on higher taxation of the largest assets at the end of their meeting in Rio de Janeiro, Brazil. The decision was welcomed by the Managing Director of the International Monetary Fund, Kristalina Georgieva.
According to the final communiqué adopted on Friday, the G20 countries committed to “cooperate” so that the owners of the largest assets are taxed more, without, however, agreeing to the imposition of a global tax rate.
With “full respect” for “national sovereignty in fiscal matters”, the member countries of the group of the twenty most developed economies in the world agreed to “try to work together” to “ensure that the richest individuals contribute more”, within a framework of more tax systems and “fair” societies, according to the announcement made by Brazil, the country that holds the presidency of the G20.
For her part, the IMF managing director praised the G20’s position in favor of “tax justice”, considering the decision “timely” and “welcome”.
“The shared vision of G20 ministers on progressive taxation is timely and welcome, as the need to restore fiscal margins while responding to social and development needs involves difficult decisions in many countries,” Kristalina Georgieva stressed in a press release. In her view, “promoting tax fairness will help ensure social acceptance of these decisions.”