/ world today news/ The G-20 countries gave up endless tax races and agreed to set a minimum state tax of 15%, Süddeutsche Zeitung reports. This global financial reform will put an end to the so-called “tax haven” and will fill the budgets. However, difficulties will arise on the way to the implementation of the plan, because not all governments support this initiative, the German newspaper notes.
In Venice, G20 finance ministers signed an agreement on global tax reform, according to Süddeutsche Zeitung. They decided to abandon the race for the lowest state taxes and fees, which is harmful to the economy, and agreed on a minimum tax of 15%.
„That’s good for all of us“said US Treasury Secretary Janet Yellen. “It’s good to see that the competition ended with a consensus reached.” It is also planned to regulate the tax legislation regarding such super-profitable enterprises as the American IT-concerns, explains the German publication.
The global tax reform – the first in 100 years – marks a turning point in international financial policy, the author of the article continues. This will end tax havens and fill the budgets of many countries. They, in turn, will be able to invest money in job creation, education and infrastructure. It is “a huge success that will make the world faireroh place“said German Finance Minister Olaf Scholz.
But on the way to the implementation of the plan by 2023, difficulties may arise in both the EU and the US. Yellen needs the support of Congress, but many Republicans oppose the reform. In Europe, respectively, the minimum tax does not suit Hungary, Estonia and Ireland.
There is another side to the problem – Washington is also pushing for the abolition of digital taxes adopted in a number of European countries – including France – for the services of the largest American IT companies.
After Venice, Yellen and Scholz will travel to Brussels to negotiate with the member states of the union and remove all fears and obstacles. But France will hold a presidential election in 2022 and that could complicate the task of scrapping the digital tax, the newspaper noted.
Translation: ES
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