MercoPress. South Atlantic News Agency

Haddad insists on taxing super rich to fight social inequality

Multilateralism and tax justice are essential for a “greener, more stable, and more inclusive” global economy, Haddad argued

Brazil's Finance Minister Fernando Haddad reinforced his stance regarding global taxation of the super-rich to finance the fight against the climate crisis and to fight social inequality. He outlined his position in a letter at the 2025 annual meeting of the International Monetary Fund (IMF) and the World Bank in Washington, DC.

Represented by Secretary of International Affairs Tatiana Rosito, Haddad released the letter proposing a progressive international tax reform and a “new globalization” guided by socio-environmental criteria. The document, the ministry stated, summarizes the Brazilian view according to which “now is the time for the super-rich to pay their fair share of taxes.”

“The global tax system remains inadequate, allowing an unprecedented concentration of wealth and facilitating large-scale tax evasion and avoidance,” the document reads.

The text classifies inequality and tax evasion as structural flaws in the global economy that threaten economic stability and social cohesion.

The document also details the focus of domestic economic policy, centered on fiscal consolidation with social justice. In it, the Brazilian government reaffirms its commitment to a progressive taxation agenda on income and wealth, a review of inefficient tax exemptions, and the integration of environmental sustainability goals into the core of fiscal policy through the Ecological Transformation Plan.

Minister Haddad, who was scheduled to travel to the annual meeting, remained in Brasília to negotiate budgetary solutions after the provisional measure that stipulated tax increases on financial investments, fintechs, and online betting companies was rejected. In the letter, he argued that public accounts should be balanced “without sacrificing equity.”

On the international stage, Brazil has expressed concern about the rise of unilateral and protectionist measures, which, the text says, “fuel uncertainty and threaten global growth.” The country has proposed “redoubling efforts to build a new globalization,” guided by environmental goals and social inclusion, with the restoration of predictable structures based on multilateral rules.

“The global economy is navigating uncharted waters,” it goes on to say, pointing to structural risks such as persistent inflation, high interest rates, an aging population, and an impending climate crisis. The Brazilian government argues that the IMF and the World Bank should lead a transition to a more stable and inclusive economic system.

The letter also reaffirms the Brazilian Central Bank’s “unwavering commitment” to controlling inflation, recognizing that interest rates remain at contractionary levels. The text highlights the resilience of the Brazilian economy, with projected growth of 2.4 percent for 2025, declining unemployment and inequality rates, and balanced external accounts.

On the fiscal front, the government forecasts a primary surplus of 0.25% of the GDP in 2026, with a gradual increase to 1.25% in 2029 – the year in which it plans to stabilize public debt.

Finally, Brazil advocates structural reforms in IMF governance, including greater representation for developing countries and the preservation of the institution’s analytical independence. The document describes the fund as a “highly valued beacon” and calls on the body to act more transparently in assessing the impacts of trade restrictions and cuts in international aid.

In Haddad’s view, strengthening multilateralism and tax justice are essential for a “greener, more stable, and more inclusive” global economy. (Source: Agencia Brasil)