Ahead of the G7 meeting of world finance leaders – Chancellor Rishi Sunak says he is “confident” of reaching a global agreement on digital taxation.
Tax on big tech and multi-nationals has been has been continuing grumble between the United States and countries around the world – including the UK.
Mr Sunak said:
“Securing a global agreement on digital taxation has also been a key priority this year – we want companies to pay the right amount of tax in the right place, and I hope we can reach a fair deal with our partners. I’m determined we work together and unite to tackle the world’s most pressing economic challenges – and I’m hugely optimistic that we will deliver some concrete outcomes this weekend.”
On Wednesday this week, the US announced tariffs on around $2billion of imports (including certain goods from the UK) in retaliation for taxes on big US tech firms.
But, the decision was taken to suspend them for 180 days to allow further talks to take place in London – and at the upcoming meeting of G20 nations in July.
Ahead of the G7 talks, starting in London on Friday, finance ministers from Germany, France, Italy and Spain co-signed a letter urging an agreement on an international tax system “fit for the 21st Century”.