|French finance minister Bruno le Maire told the BBC any deal must include both a tech tax on digital activities as well as a minimum rate. (Photo from BBC)|
[Asia News = Reporter Reakkana] The French and German finance ministers revealed that a global agreement to end the "race to the bottom" on corporate taxation is within sight. France's Bruno le Maire told the BBC the G7 club of rich nations were "just one millimeter away from a historic agreement" on a global minimum rate.
He urged low tax states like Ireland to back a deal that would target tech giants such as Amazon and Microsoft. The German finance minister said a 15% rate would help pay back Covid debt Tax on big tech and multinationals has been a source of friction between the US and fellow G7 countries such as the UK. German finance minister Olaf Scholz said it’s important to stop the world's biggest companies from dodging tax. Mr. Le Maire also urged Ireland, which has one of the lowest corporate tax rates in the European Union, at 12.5%, to get "on board".
Meanwhile, finance ministers will also discuss climate change at the two-day meeting which starts in London on Friday. Before the G7 talks, starting in London on Friday, Mr. Le Maire and Mr. Scholz along with their counterparts in Italy and Spain co-signed a letter urging an agreement on an international tax system "fit for the 21st Century".