G20 leaders reach landmark deal for an efficient international tax system (Italian PM)
Leaders of the G20 countries have reached a “historic deal” for a fairer and more efficient international tax system that would set a global minimum corporate tax of 15%. “We have reached a historic agreement for a fairer and more efficient international tax system,” Italian Prime Minister Mario Draghi said on Saturday at the opening of the G20 summit.
The OECD finalized a major reform of the international tax system earlier this month whereby multinational enterprises (MNEs) will be subject to a minimum tax rate of 15 percent from 2023. The deal has been reached by 136 countries and jurisdictions representing more than 90 percent. percent of global GDP. The global minimum tax aims to prevent companies from moving jobs or profits overseas in order to avoid paying taxes.
Hill said the deal would set a 15 percent global minimum corporate tax rate that administration officials said would generate $ 60 billion or more in additional revenue each year in the United States alone. The first session of the G20 summit in Rome kicked off on Saturday as world leaders, including Prime Minister Narendra Modi, gathered to discuss the global economy and health.
Over the next two days, heads of state and government from the world’s major economies, as well as guest countries and representatives of international and regional organizations, will address several key topics on the global agenda. Traditionally, finance ministers also attend the event. Draghi said in his opening remarks that “multilateralism is the best answer” to address the challenges posed by the COVID-19 pandemic across the world.
“The pandemic has separated us. Earlier we were confronted with protectionism, unilateralism, nationalism, but the more we meet all our challenges, the clearer it is that multilateralism is the best answer to the problem we are facing. faced today, âhe said. “In many ways it (multilateralism) is the only possible response of the climate change pandemic to fair and equitable taxation, going it alone is just not an option. We have to do what we can all do. to overcome our differences. We must remember the spirit that led to the creation of this group, “he added.
The Italian Prime Minister said that almost two years after the start of the pandemic, “we can finally look to the future with some optimism”. âSuccessful vaccination campaigns and coordinated actions by government and central banks have enabled the global economy to rebound,â he said. (ANI)
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