Global Minimum Tax, the international tax reform to be done over several generations, on which 130 countries of the world have agreed. The opposition also questioned the central government on this in the monsoon session of Parliament. The Central Government has given its intention regarding this tax and all the information about this tax to the House. Let us tell you that it is being called that tax reform, after which success will be able to crack down on many big companies.
Government bid – India in support of it
The government was asked in the House whether India has also agreed to this tax reform and supported it? If so, then the reason for this decision should be told by the government to everyone. On behalf of the Central Government, Union Minister of State for Finance, Pankaj Chaudhary replied to this. He said that it is true that India has supported it.
He said that by July 1, 2021, many members of the Organization for Economic Cooperation and Development (OEDC) / G20 have agreed to this. He told that a high level pattern has been adopted. In this, a global minimum tax has been agreed, the rate of which will be at least 15 percent. This rate may vary from country to country.
Biden had brought the proposal
This tax has been initiated by US President Joe Biden. About 130 countries including India have agreed to this tax. Apart from economic superpowers like India and China, this tax agreement has also been signed by tax haven countries like Bermuda and Cayman Islands. In this, these countries have supported the imposition of the tax, amid a global effort to prevent multinational companies from evading tax liability by transferring their profits to countries with low rates.
What is global minimum tax
The OEDC announced this agreement in June. The agreement also talks of taxing global companies in countries where they make profits through online business but are not physically present there. This agreement has come to the fore after Biden’s proposal to impose a tax at the rate of at least 15 percent. The talks in this matter have accelerated due to the US proposal. Now this agreement will be discussed in the meeting of G-20 countries this year. It is expected that a detailed draft in this regard will be prepared in October and the agreement will be implemented in 2023.
French finance minister supported
OEDC, which is in Paris, and on its behalf, talked about the rule of taxing the share of profits of the largest global companies in countries where they do business online but they are not physically present. French Finance Minister Bruno Le Maire has called it the most important international tax agreement of this century. Countries led by France have begun unilaterally levying digital taxes on US tech companies such as Amazon, Google and Facebook.
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