With the G20 summit scheduled to take place soon, there is a current highlight regarding implementing the so-called ‘billionaire tax’. The Indian Congress party has yet to follow suit, challenging Prime Minister Narendra Modi to come clean on the matter and clearly state the position as per International Relations.
The call for billionaires to pay taxes has received global approval, with many countries such as Brazil, France, Spain, South Africa, and Germany supporting the move. The country that currently holds the presidency of the G20 suggested increasing the wealth tax rate to 2% per annum for fortunes above $1 billion; this would affect approximately 3,000 individuals and bring up to $250 billion per year.
Congress general secretary Jairam Ramesh has noted that with 167 billionaires, India can create 1. Claiming that such a tax would yield 5 lakh crore every year, the party emphatically pointed out that such revenue could be employed for basic public utilities such as schools, hospitals, and renewable energy sources, among others.
The idea of a billionaire tax had been put forward in an international lex battle and continues to attract increasing attention following an open letter from 19 former presidents and prime ministers, including Michelle Bachelet of Chile, Stefan Lofven of Sweden, and Felipe Gonzalez of Spain. The letter applauded Joe Biden’s billionaire income tax plan and demanded strengthening international collaboration against wealthy individuals’ tax avoidance.
While the G20 finance ministers and central bank governors meeting in Rio de Janeiro nears, the focus turns to India’s position on this question. Ramesh has urged Prime Minister Modi to explain the government’s stance on the matter and discuss the possibility of the said tax benefiting the country.
Its further hearing has become more heated. The recent proposal of the so-called ‘billionaire tax’ is already a strongly debated item on the G20 summit’s agenda, and the world is watching India on how it tackles this highly sensitive issue.
