On Friday, a group of 136 OECD (Organization of Economic Co-operation and Development) member countries had agreed to a minimum global tax rate of 15.0 per cent for blue-whale multinational business groups, largely aimed at making it harder for heavy-weight conglomerates to avert taxation by registering HQs in low-tax safe-haven nations, while US President Joe Biden had welcomed the deal as well despite the scale of damage a barrage of US-based multinational businesses would have to bear as a repercussion to a sweeping reform in global tax rules. Biden was quoted saying shortly after reaching an accord over a global tax rate of 15.0 per cent with Dublin, Budapest alongside Tallinn dropping their oppositions off the table, that, the deal had metamorphosized a level-playing ground. Nevertheless, it still remains to subject to deep discontent on whether such a swift reform on global tax rules could be reached without existence of a pandemic that had toiled trillions from advanced economies in stimulus alongside other measures over past one year and a half, suggested analysts.
Global tax reforms finally witness a dawn
Apart from that, followed by the agreement, Joe Biden said in a separate statement, “Establishing, for the first time in history, a strong global minimum tax will finally even the playing field for American workers and taxpayers, along with the rest of the world.
” Nonetheless, out of 140 member countries involved in the deal, 136 had voted in favour of a global-scale tax of 15.0 per cent, which is still much lower than a tax of 23.5 per cent in industrialized countries, though, Kenya, Nigeria, Sri Lanka and Pakistan abstained from voting.