With the "billionaire tax" debate gaining momentum globally, the Indian National Congress has raised questions about Prime Minister Narendra Modi's stance on the issue.
Congress General Secretary Jairam Ramesh asked what India's position will be when the matter is discussed at the upcoming G20 summit in Rio de Janeiro later this month.
A group of former presidents and prime ministers has pushed for the implementation of a "billionaire tax" among G20 countries.
This proposal, backed by Brazil, the current G20 chair, and supported by nations such as France, Spain, South Africa, and Germany, suggests a 2% wealth tax on billionaires.
Ramesh highlighted the increasing global consensus that billionaires should contribute a fair share of taxes.
In a post on X, he pointed out the potential benefits of such a tax for India.
"India has 167 dollar billionaires. A 2% wealth tax would raise 1.5 lakh crores annually, almost 0.5% of our GDP. This revenue could fund schools, hospitals, renewable energy projects, and other essential investments for our country's future," he stated.
The Congress leader pressed for clarity on PM Modi's position regarding the proposed tax.
"What is the non-biological PM’s stance on a 'billionaire tax'? What will be India's position when it is discussed at the G20 meet in Rio de Janeiro later this month?" Ramesh questioned.
He also referenced a media report mentioning that former global leaders have sent an open letter to current leaders of the world's 20 largest economies, urging them to support a global tax on billionaires.
Global push for wealth tax
The billionaire tax proposal has gained significant traction, with notable support from key G20 member countries.
Brazil, holding the G20 presidency, has been at the forefront of this initiative.
France, Spain, South Africa, and Germany have also endorsed the idea, reflecting a broader shift towards wealth redistribution at the highest economic levels.
Potential impact on India
India, home to 167 dollar billionaires, stands to gain substantial revenue from a 2% wealth tax.
The estimated 1.5 lakh crores generated annually could be instrumental in funding critical public services and infrastructure.
This aligns with the broader goals of economic development and social equity.
The G20 summit in Rio de Janeiro is supposed to provide a platform for these discussions, with global leaders expected to debate and potentially reach a consensus on the implementation of a billionaire tax.
The outcome of these deliberations will have significant implications for international tax policies and wealth distribution frameworks.
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