Spain and Brazil proposes higher tax contributions from the super-rich worldwide | Current Affairs | Vision IAS
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Spain and Brazil proposes higher tax contributions from the super-rich worldwide

Posted 03 Jul 2025

2 min read

Proposed at the UN’s 4th International Conference on Financing for Development in Sevilla, both nations called for enforcing effective taxation of High-Net-Worth Individuals (HNIs) and taxing the super rich to curb inequality. 

  • The proposal forms part of Seville Platform for Action, which is turbocharging voluntary actions to help reach the Sustainable Development Goals (SDGs).
  • Both countries also proposed creating a Global Wealth Registry for more transparency, accountability, and fairer contributions from the richest. 
    • This proposal aims to create a comprehensive international registry of all wealth and assets, along with real beneficial owners. 

Need for Actions to curb Inequality

  • Income Disparity: The wealthiest 1% own more than 95% of the global population combined. 
  • Addressing Tax Disparity: The wealth of the richest 1% has surged $33.9 trillion since 2015, yet billionaires only pay around 0.3% in real taxes.  
  • Achieving SDGs: Billionaires—roughly 3,000 people—have gained $6.5 trillion in real terms, more than the $4 trillion estimated annual cost of achieving the SDGs.
  • Public-Private Wealth Gap: Between 1995 and 2023, global private wealth grew by $342 trillion – eight times more than global public wealth. 

Initiatives to Tackle Inequality

  • Global
    • Seville Platform for Action: Supports voluntary international actions toward achieving SDGs.
    • G20 Agreement: G20's 2024 agreement to develop a joint tax agenda for HNIs.
    • Negotiations on UN Convention on Tax.
  • India
    • Employment Generation Schemes like MGNREGA, DDU-GKY, etc.
    • Social Security Schemes like Atal Pension Yojana, Jeevan Jyoti Yojana etc. 
    • Financial Inclusion through Jan Dhan Yojana and Financial Access through schemes like MUDRA Yojana. 
  • Tags :
  • Taxation
  • Inequality
  • Economic Inequality
  • Wealth
  • Wealth Distribution
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