Joint statement: Organisations applaud UN Committee’s work on net wealth taxes

The upcoming 27th Session of the Committee of Experts on International Cooperation in Tax Matters, hosted in Geneva, is poised to continue a crucial discussion on net wealth taxes. This United Nations body, comprising specialists from diverse countries, will examine a report that elucidates the design and implementation mechanisms of these taxes.  

In this significant moment, the Tax Justice Network, in collaboration with partner organisations including ActionAid International, Financial Transparency Coalition, Oxfam, and Patriotic Millionaires, is pleased to release a joint statement. Together, we acknowledge the Committee’s dedication to formulating practical guidance on wealth taxation policies, particularly with regard to net wealth taxes. 

Our statement underscores the alarming reality of widening disparities, both between nations and within them. It highlights the intersections of multifaceted inequalities spanning gender, race, religion, disability and socio-economic class, emphasising the pressing need for structural reforms. The exponential surge of concentrated private wealth, shielded from equitable taxation by opaque financial systems, requires bold and effective responses. 

The joint statement advocates for the implementation of a net wealth tax as a potent tool in the fight against inequality and the promotion of social justice, aligning perfectly with the Sustainable Development Goals. The revenue generated from taxing wealth can be vital for low income countries, strengthening fiscal capacity and enabling the provision of vital public services. We extend our commendations to the Subcommittee on Wealth and Solidarity Taxes for their efforts in providing guidance on a range of wealth taxation options. We call for the approval of the subcommittee’s recommendations on wealth taxes and urge the provision of additional guidance, including the formulation of model wealth tax legislation, to establish a unified approach worldwide, thus curbing tax avoidance. 

In addition, we stress the importance of expanding the international framework for the exchange of information, essential for the efficient administration of wealth taxes. Recognising that net wealth taxes primarily target the wealthiest segments of society, we propose the establishment of a global asset registry. This would ensure comprehensive transparency regarding all relevant assets, thwarting attempts to conceal wealth offshore. 

This pivotal report could mark a substantial step towards global equity. We encourage nations to work together and implement comprehensive wealth taxation policies, edging us closer to a more equitable future. The journey to tax justice is ongoing, and every stride in the right direction brings us nearer to a fairer world. 

You can read the full joint statement here.