Oxfam urges G20 governments to impose minimum 8% wealth tax on ultra-rich

By Nandini Das

CNBC-TV18.com

Published July 25, 2024

In the past decade, the wealth of the richest 1% worldwide increased by $42 trillion, news agency AFP reported, citing global non-profit organisation Oxfam.  These statements were made ahead of the G20 conference in Brazil.

The $42 trillion acquired by the ‘richest’ is nearly 36 times more than the wealth accumulated by the poorest half of the world’s population.

Oxfam pointed out that despite the tremendous growth in income, billionaires globally have been paying taxes less than 0.5% of their wealth.

The NGO said that taxes on the rich have fallen to all-time lows, adding to extreme inequality in which the majority struggle to subsist on limited resources.

Oxfam urged G20 countries, where nearly 80% of the world's billionaires reside, to impose an annual net wealth tax of at least 8% on the ultra-wealthy.

Oxfam recently criticised rich countries for overstating their climate finance commitments. They claimed to provide $116 billion in 2022, but the actual amount was under $35 billion.

At the 2009 Copenhagen conference, rich nations pledged $100 billion annually from 2020 to aid developing countries with climate change. Delays in this commitment have strained trust and fueled disputes in subsequent climate negotiations.

NGO estimated the true value of climate finance provided by wealthy countries in 2022 is as low as $28 billion, with approx $15 billion earmarked for adaptation activities critical for climate-vulnerable nations.