July 12, 2021
2 mins read

G20 FMs approve global tax reform

The plan will have to be definitely approved by G20 heads of state and government gathering in Rome in October for the annual major summit…reports Asian Lite News.

The G20 Finance Ministers have agreed to go ahead with the plan to design a global tax system that would impose a minimum levy on multinational companies.

After a two-day meeting in Venice, the Ministers and central bank governors on Saturday reaffirmed the common will to reform the international business tax system, reports Xinhua news agency.

If implemented, this would put an end to multinational corporations shifting profits to low-tax heavens around the world.

In the final communique, they wrote that they achieved “a historic agreement on a more stable and fairer international tax architecture” after several years of talks and building on the progress made last year.

“We have endorsed the key components of the two pillars: on the allocation of profits of multinational enterprises and on an effective global minimum corporate tax,” Italian Economy and Finance Minister Daniele Franco said at the closing press conference.

The agreement would be relevant in order to “contribute to stabilizing the international tax system in the coming years” ,said Franco, whose country holds the G20 presidency this year.

However, “additional work is necessary between now and October to fully finalise it”, he said.

The plan will have to be definitely approved by G20 heads of state and government gathering in Rome in October for the annual major summit.

On the economy, the G20 finance leaders said the outlook has improved in many countries since their last meeting in April, mainly thanks to ongoing vaccination campaigns and the roll-out of supportive policies.

They underlined that the recovery remains uneven, and “exposed to downside risks, in particular the spread of new variants of the Covid-19 virus and different paces of vaccination”.

“We reaffirm our resolve to use all available policy tools for as long as required to address the adverse consequences of Covid-19, especially on the most impacted, such as women, youth and informal and low-skilled workers,” the final statement read.

“We will continue to sustain the recovery, avoiding any premature withdrawal of support measures, while remaining consistent with central bank mandates and preserving financial stability and long-term fiscal sustainability.”

Created in 1999, the G20 serves as a main and informal forum for international cooperation on financial and economic issues.

It comprises 19 countries plus the European Union.

The countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, Britain, and the United States.

The group, home to almost two-thirds of the world’s population, accounts for about 86 per cent of the gross world product and 75 per cent of global trade as of 2020.

ALSO READ-G20 Nations’ GDP Grows 8.1% in Q3 2020: OECD

READ MORE-G20 Ministers urge continued financial aid

Previous Story

Apple threatens exit from UK over patent fees

Next Story

Dhaka summons UK envoy over report on Zia

Latest from -Top News

UK Warns China Over Taiwan Moves

Healey’s comments come amid rising global concerns over Chinese military activity around Taiwan and the growing Western focus on the Indo-Pacific region. British Defence Secretary John Healey has said the UK is

US Sticks to August 1 Tariff Deadline

US Commerce Secretary Howard Lutnick ruled out any possibility of an extension…reports Asian Lite News The US administration on Sunday said the August 1 deadline for imposing reciprocal tariffs remains unchanged and

EU Lawmaker Slams US Trade Deal

US President Donald Trump and European Commission President Ursula von der Leyen announced earlier in the day that they had reached a trade agreement…reports Asian Lite News A top EU lawmaker has

Killing Fields of Gaza

While Israeli airstrikes on Gaza continue to dominate global headlines after hundreds of days of conflict, a parallel and equally devastating crisis is unfolding — one that receives far less attention: deepening

EU, China United on Climate, Split on Rest

Climate pact offers rare unity as trade rifts, Ukraine war, and economic tensions dominate EU-China summitChina and the European Union struck a rare note of unity on climate change Thursday, issuing a
Go toTop

Don't Miss

Hampi to host third G20 cultural group  

The third meeting in Hampi will build upon the positive

G20 Adopts Delhi Declaration

Modi announced on Saturday that the G20 has officially adopted