A staggering increase in global wealth disparity has been revealed in a recent Oxfam report, which highlights that the top 1% of the world's population amassed $42 trillion over the past decade. This figure is 34 times greater than the wealth accumulated by the bottom 50% of the global population during the same period.
According to the report, the average wealth per person in the top 1% surged by nearly $400,000 in real terms, while individuals in the bottom half experienced a meagre increase of just $335, equating to less than nine cents a day.
The report brings to light the minuscule tax rates paid by billionaires worldwide, which average less than 0.5% of their wealth. This issue is set to be a critical agenda item at the upcoming G20 Finance Ministers and Central Bank Governors meeting in Brazil. Brazilian Finance Minister Fernando Haddad has emphasized the need for a global agreement to impose higher taxes on the super-rich, with strong support from countries like South Africa, Spain, and France.
Oxfam's findings also reveal that the share of income for the top 1% of earners in G20 countries has increased by 45% over the last four decades, while the top tax rates on their incomes have been reduced by roughly a third. This trend of diminishing tax obligations for the wealthiest individuals has exacerbated global inequality and left governments struggling to address the issue effectively.
To combat this growing disparity, Oxfam advocates for an annual net wealth tax of at least 8% on billionaires' fortunes. The G20 nations, which host nearly 80% of the world's billionaires, are seen as pivotal in implementing such measures.
In India, the wealth tax was abolished in 2015 and replaced by a 2% surcharge on those earning more than Rs 1 crore annually. Before its abolition, the wealth tax required individuals, Hindu Undivided Families, or companies to pay 1% on net wealth exceeding Rs 30 lakhs. In the financial year 2013-14, India collected Rs 1,008 crore from the wealth tax.