Press Release
Civil society members discuss the progress of the fair taxation agenda at the G20 and beyond
12 December 2024 | Online
For Immediate Release
On 11 December 2024, The PRAKARSA, LDC Watch, South Asia Alliance for Poverty Eradication (SAAPE), Tax and Fiscal Justice Asia (TAFJA), and Oxfam in Asia jointly organised a webinar that brought together policymakers, economists, tax experts, and civil society representatives from Asia, Europe, Africa, Latin America, and beyond. The event addressed the pressing issue of global wealth inequality and the role of wealth taxation as a solution. The event opened with welcome remarks from Ah Maftuchan, the Executive Director of The PRAKARSA, who emphasized the urgency of tackling wealth inequality. He highlighted striking statistics, such as the top 10% of the global population holding 76% of the world’s wealth. Vidya Dinker from TAFJA Wealth Tax Working Group moderated the event.
Herni Ramdlaningrum from The PRAKARSA highlighted the transformative potential of wealth taxation in Indonesia, the Philippines, and Vietnam. She stated “A progressive wealth tax of 1–2% could significantly boost budgets, covering substantial portions of education and healthcare needs (e.g., 19% of education and 20% of healthcare in Indonesia) and higher rates of 3–10% could bridge critical funding gaps.” Sudhir Shrestha from SAAPE discussed advocacy campaigns by The PRAKARSA, LDC Watch, and SAAPE to push for progressive net wealth taxation at the G20. Shrestha cited a finding from South Asia Wealth Tax Report (2022) that a progressive net wealth tax in India (taxing USD 5 million to USD 50 million wealth at 3%; USD 50 million to USD 1 billion at 5%; and greater than USD 1 billion at 10%) could raise USD 84.30 billion by taxing 66,860 individuals with wealth of over USD 5 million. This amount is enough to double the education spending or more than triple the healthcare spending in India.
Dereje Alemayehu of the Global Alliance for Tax Justice (GATJ) pointed out that the declining tax rates for the wealthy have shifted the burden disproportionately onto the working class. He said, “It is difficult for the governments to tackle ‘stateless’ revenue’ and the profit-shifting is on the rise .” Alemayehu was also vocal against the G20/OECD-led Inclusive Framework on Base Erosion and Profit Shifting (IF/ BEPS) for the negotiation on international tax architecture stating that, “if we take the wealth tax issue to G20, then it derails the UN Tax convention process. We cannot cook one meal in two stoves, and historically the UN is a far more inclusive option than the G20.” Claudio Fernandes (GESTOS) emphasised the importance of civil society in shaping tax policies stating that, “Gender bias in tax systems must be addressed, as the wealthy often avoid taxes, exacerbating inequality. Civil society organizations must unite, as they did during the G20 in Brazil, to drive momentum, provide clarity, and foster further cooperation.” Bruno Fierens (Millionaires for Humanity) shared a personal perspective, criticizing the systemic inequities that allow wealth to be taxed far less than income, “Existing taxation is unfair towards common people. Many wealthy individuals are in denial, and common people too in denial, ignore the obscene wealth of a few people and do not question it; they too aspire to reach that insular podium and thus ignore the path it takes to reach that level, and this denial has allowed the richest groups to create and maintain this imbalanced system of exploitation.”
In the final session, Christian Hallum from the Oxfam Global Tax Team emphasized the importance of sustained advocacy and international cooperation in combating inequality. Hallum said,“ Wealth taxation
has shifted from a fringe idea to mainstream recognition, as seen in the G20. While changes are yet to be realized, the evolving narrative is promising. Taxing the rich is not just about revenue but also about restoring power to nation-states.” The webinar concluded with Nipatta Quamman from Oxfam Regional Platform Asia expressing gratitude to the speakers, moderator and facilitators for the engaging discussion. The webinar was attended by over 60 participants.
For further information please contact:
Samira Hanim
The PRAKARSA
Email: shanim@theprakarsa.org
Sudhir Shrestha
South Asia Alliance for Poverty Eradication (SAAPE)
Email: sudhir.saape@gmail.com
