The Indonesian, South African and Mexican finance ministers on Thursday spoke out in favor of a revision of international tax regulations so that companies pay their fair share of a more globalized and digitized business world.
In a joint article with US Treasury Secretary Janet Yellen and German Treasury Secretary Olaf Scholz, Sri Mulyani Indrawati from Indonesia, Tito Mboweni from South Africa and Arturo Herrera Gutierrez from Mexico supported the changes proposed by the Group of Seven (G7) advanced economies.
The G7 finance ministers agreed on Saturday on a system designed to force multinational companies to pay more taxes in the countries in which they operate, along with a minimum global tax rate of at least 15%. Continue reading
“This year the nations have a historic opportunity to end the race to the bottom in corporate taxation and restore government resources at a time when they are most needed,” said the five ministers in the article, which appeared in newspapers such as Washington Post and the Frankfurter was published Allgemeine Zeitung.
“To pave the way to this goal, we advocate an initial agreement that the minimum global tax rate must be at least 15 percent, as agreed by the Group of Seven Countries last week,” they wrote, adding that they were confident that the minimum tax rate is reached could “ultimately be pushed up”.
The current international tax system has undermined national sovereignty and disadvantaged the working class, they said.
“Together we can ensure that global capitalism is compatible with fair tax systems and that governments can tax multinational corporations,” they added.
They called on all other negotiating countries to work together and reach an agreement before the finance ministers of the group of 20 major economies meet in July. Signing by the G20 would give the agreement global reach.
G20 member China is among the countries that have objected to a minimum global tax rate of at least 15%, said people familiar with the negotiations.
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