A new report by the International Tax Observatory reveals that Brazil has the highest level of wealth concentration in Latin America, with just 70 billionaires holding assets comparable to Peru’s GDP.
The study, produced by the research lab based at the Paris School of Economics and led by economist Gabriel Zucman, highlights deep structural inequality in the country.
According to the report, these billionaires currently hold around $265 billion, a figure that has surged nearly sevenfold since 2000 to reach $556 billion — equivalent to roughly a quarter of Brazil’s GDP.
In contrast, the wealth of the bottom 50% of the population has remained largely stagnant over the same period.
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At the same time, Brazil’s tax burden stands at about 33% of GDP — slightly below the Organisation for Economic Co-operation and Development average of 34%, but well above the Latin American average of 21.3%.
Despite this relatively high tax level, the report describes Brazil’s system as “strongly regressive.” Consumption taxes — embedded in the price of goods and services — make up a large share of revenue, while taxes on income and wealth remain comparatively low. This means poorer households bear a proportionally heavier tax burden.
The findings come amid ongoing fiscal reform debates in Brazil and broader international discussions on taxing the ultra-wealthy — an issue promoted by President Luiz Inácio Lula da Silva during global forums such as the G20.
The report also examines inequality and taxation across other countries in the region, including Argentina, Chile, Colombia, Mexico, Peru, and Uruguay.
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Latin America is described as the second most unequal region in the world, with the richest 10% earning around 60% of total income, while half the population receives just 7%.
Billionaire wealth across the region has risen sharply since 2000, reaching approximately $700 billion, while the poorest half has seen only limited gains.
Average tax collection across Latin America remains relatively low, limiting public investment in key areas such as healthcare, education, and infrastructure. The report also notes that tax systems still rely heavily on consumption and labour taxes, while wealth taxation remains minimal — reinforcing perceptions of unfairness.
According to the study, introducing a minimum 2% tax on large fortunes could generate around $24 billion annually across the region, improving both revenue and tax progressivity.
“This report presents a concrete solution to one of the main challenges facing Latin American democracies: the coexistence of extreme inequality with tax systems that fail to adequately tax those at the top. This is not a radical proposal — it is a basic democratic standard,” said Zucman.
