Last Updated on: 8th July 2023, 03:18 pm
The G7 finance ministers, including the US and UK, agreed on Saturday to raise tax rates around the world for multinational companies like Google, Apple, and Amazon.
The Group of Seven Great Advanced Economies has agreed to support a minimum global tax rate of at least 15% and to pay more taxes to companies in the markets in which they sell goods and services, which could enable them to cope with the consequences of Facing COVID-19.
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“The G7 finance ministers have reached a historic agreement to reform the global tax system to adapt it to the global digital age,” said UK Treasury Secretary Rishi Sunak after chairing a two-day meeting in London.
US Treasury Secretary Janet Yellen said the “substantial and unprecedented commitment” would end what she called a race to the bottom in global taxation.
The deal, which has been going on for years, also promises to end national taxes levied by the UK and other European countries on digital services, which the United States says has wrongly targeted American tech giants.
However, the measures will have to find broader approval at a G20 summit, which includes a number of emerging countries, in Venice next month.
