Presented during the UN’s 4th International Conference on Financing for Development – taking place this week in Sevilla, Spain – the proposal highlights a growing problem: the richest individuals often contribute less to public finances than ordinary taxpayers, thanks to lower effective tax rates and legal loopholes.
“Our countries need more and more public revenues to meet their needs. Inequality is a problem everywhere and the richest pay less than the middle class – even less than lower-income taxpayers,” said Spain’s Secretary of State for Finance Jesús Gascón, during a press conference at the conference venue, where temperatures have soared to record highs in recent days.
The two governments are calling on others to join a drive for a fairer, more progressive global tax system. They point to a stark reality: the wealthiest one per cent of the global population owns more than 95 per cent of humanity combined.
The Spanish Secretary of State for Finance Jesús Gascón (on screen) addresses a meeting at the Financing for Development conference in Sevilla, Spain.
Sharing knowledge, closing gaps
In today’s interconnected world access to reliable data is essential. The initiative prioritises information sharing – between governments and tax authorities – to help expose gaps in tax systems, close loopholes and combat evasion and avoidance.
Improving data quality and building national capacities for data analysis will help tax administrations identify where and how wealth is concentrated, how much is currently being paid and what needs to change.
Though some progress has already been made, the countries say much more must be done and many more countries should come on board.
“There’s a real need to know who the beneficial owners are behind companies and legal structures used to conceal wealth,” said Mr. Gascón. The initiative also proposes technical cooperation, training in data analytics and peer review mechanisms to strengthen national tax systems.
A global wealth registry?
Spain and Brazil are even considering steps toward a global wealth registry – acknowledging that this would take time, political will and major national efforts.
But the aim is clear: more transparency, more accountability and fairer contributions from the richest.
“We cannot tolerate the intensity of inequality, which has been increasing in recent years,” said Brazil’s Minister-Counsellor to the UN, José Gilberto Scandiucci denying that this was some kind of far-leftist agenda.
“This is a moderate initiative to confront a very radical reality.”
The proposal forms part of the Seville Platform for Action, which is turbocharging voluntary actions to help reach the Sustainable Development Goals (SDGs) – currently way off track for the 2030 deadline.
G20 highlights ‘high worth’ factor
It also follows the 2024 agreement by the G20 industrialised nations who met in Rio (Brazil) last year – the first international accord to commit to a joint tax agenda for high-net-worth individuals.
A three-month work plan is now being drawn up with regular meetings planned to track progress. The goal – bring more countries, international organisations and civil society on board to push forward tax reforms targeting the ultra-rich.
“If we want to effectively tax the super-rich, fight inequality and make our tax systems fairer and more progressive, we need political will – and we need to act within our means,” Mr. Gascón added.