The inequality crisis is worsening. The year 2025 has set yet another bleak record with billionaire wealth jumping by over 16 per cent in 2025 to $18.3 trillion – its highest level in history. Since 2020, billionaires have increased their riches by 81%. Recognizing this reality, Brazil’s 2024 G20 presidency placed taxing High Net-Worth Individuals (HNWI) on its agenda. This was carried over by South Africa’s 2025 presidency, which commissioned an extraordinary committee of independent experts on global inequality to produce a report on global inequality. The Committee’s report asserted that “there needs to be a shift from regressive indirect taxes (such as VAT) in favour of more direct taxation of wealthy people and large corporations”. The IMF is a vital actor in any effort to address inequality through tax policy, as it has the power to shape domestic tax policy through its surveillance activities, lending conditionality and capacity building.

A bird’s-eye global view of the IMF’s global tax advice shows that 53% of recommendations can be considered regressive, meaning that they likely place a higher burden on lower-income households compared to higher-income ones. Although the Fund’s tax advice is diverse, indirect regressive taxes—particularly value‑added tax (VAT) and environmental levies—continue to play a central role in its guidance. Nevertheless, this report identifies encouraging policy recommendations provided by the Fund that ought to be more widespread.