The proposal was well received and incorporated into the G20 Finance Track statement, showing an initial consensus among the group’s finance ministers and central bank governors. However, the proposal still requires global support to move forward.
At the national level, on October 30, 2024, the Chamber of Deputies voted on an amendment that sought to establish a tax on large fortunes in Brazil. Presented by the PSOL, the proposal provided for the taxation of assets exceeding R$10 million, with progressive rates of up to 1.5%.
The amendment was defeated by 262 votes to 136. Supporters, including parties such as the Workers' Party (PT) and the Socialist Party (PSOL), argue that the IGF would be an essential measure to reduce social disparities and increase revenue for social purposes.
Studies indicate that the implementation of a tax on large fortunes could ukraine mobile database raise between R$40 billion and R$260 billion per year in Brazil, depending on the rates and minimum values defined for taxation.
Yellow background and several piles of dollar bills and a single pile of real bills
The Chamber of Deputies recently rejected a bill to tax large fortunes. Credit: Tarik Kizilkaya
However, critics point out that this measure may be ineffective due to challenges in defining precisely what constitutes a “large fortune” and the possibility of tax evasion. International experience shows that without a robust system of monitoring and control , the wealth tax may face significant difficulties in its practical application.
Tax on large fortunes in other countries
Internationally, few countries currently maintain direct taxation on large fortunes, especially among the members of the Organization for Economic Cooperation and Development (OECD). Understanding international dynamics can help in building pathways for changes to be considered in Brazil. Among those that still apply this type of tax are: