Congress general secretary Jairam Ramesh (L) and Prime Minister Narendra Modi (R).
Credit: PTI Photos
New Delhi: Congress on Friday asked Prime Minister Narendra Modi to spell out his views on imposing a 2 per cent wealth tax on billionaires, as a meeting of G20 Finance Ministers in Brazil's Rio de Janeiro later this month is slated to discuss a proposal in this regard.
In a post on ‘X’, Congress General Secretary (Communications) Jairam Ramesh said there is a growing consensus across the globe that billionaires must pay their fair share of taxes.
He said the world is moving towards a 2 per cent wealth tax on these billionaires, as proposed by Brazil, which now holds the annual rotational G20 Presidency, and endorsed by France, Spain, South Africa and Germany.
“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 said.
“What is the non-biological PM’s position on a ‘billionaire tax’? What will be India's position when it will be discussed at the G-20 meet in Rio de Janeiro later this month?” he asked.
Ramesh's remarks came following an open letter by former presidents and prime ministers to current leaders of G20, urging support for a global tax on billionaires.
Brazil's G20 presidency put the proposal on the table as it seeks to build support for a declaration at the group’s Finance Ministers and central bank Governors meeting later this month.
“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,” the letter said while praising US President Joe Biden's billionaire income tax proposal.
Commissioned by the Brazilian G20 presidency, the report ‘A Blueprint for a Coordinated Minimum Effective Taxation Standard for Ultra-High-Net-Worth Individuals’ said, “a minimum tax on billionaires equal to 2% of their wealth would raise USD200-250 billion per year globally from about 3,000 taxpayers.”
These revenues would be collected from economic actors who are both very wealthy and undertaxed today, the report prepared by French economist Gabriel Zucman said.