LONDON (REUTERS) – Treasury ministers of the Seven Rich Nations Group said Thursday (September 9) that they needed to make more progress on the fine print of global corporate tax reform in time for a summit of leaders in October.
Britain’s Rishi Sunak said he had called on his G-7 colleagues during a virtual meeting to make further technical progress on the reforms, and Treasury Secretary Janet Yellen underlined the need to swiftly implement the new rules.
More than 130 countries agreed this summer to develop new rules for corporate taxation, to introduce a tax rate of at least 15 percent and to lower national taxes for digital services in favor of the new taxation laws.
Diplomats are now pushing for an agreement on the technical parameters of the reform at the next Group of 20 summit in October.
“I said the G-7 must unite to take a leadership role to seek an effective deal in October,” Japanese Finance Minister Taro Aso told reporters.
Yellen noted that the deal was backed by 134 countries, which account for more than 90 percent of global GDP, and said the new international tax system would help governments invest in their workers and their economies while helping to improve the playing field for U.S. Company to the same statement from their office.
Sunak said on Twitter that prior to talks between finance ministers and central bankers in October, he also urged the G-7 to support vulnerable countries through the International Monetary Fund’s Special Drawing Rights (SDR) or emergency reserves.
The Treasury Department said Yellen also called for further efforts by the G-7 to improve support for low-income countries hard hit by the Covid-19 pandemic and its economic aftermath.
Yellen urged major economies to lend their SDRs to further support vulnerable countries, the Treasury Department said, but did not provide details on the United States’ own plans.
IMF chief Kristalina Georgieva thanked Sunak and the UK on Twitter for “remarkable progress in enhancing the benefits of the new Special Drawing Rights for countries in need” during the G7 meeting.
A G-7 source said Thursday’s meeting also looked at how to deal with the new Taliban government in Afghanistan.
“We do not want a humanitarian catastrophe in Afghanistan. There must be no famine in Afghanistan,” said the source on condition of anonymity.
Britain holds the rotating presidency of the G-7, which also includes Canada, France, Germany, Italy, Japan and the United States. Germany will take over the G7 presidency next year.