On Saturday, world leaders attended the G20 summit in Rome and endorses a crucial agreement to establish a 15% global minimum corporate tax for multinational companies. Almost, 140 countries agree to the proposal. It was propose by American President Joe Biden who believes it’s a ‘’game-Changer’’.
Joe Biden said in a tweet on Saturday, ‘’ Here at the G20, leaders representing 80% of the world’s GDP-allies and competitors alike- made clear their support for a strong global minimum tax.’’
What are G20 and member Countries?
G20 or known as Group of Twenty is an intergovernmental forum that comprises 19 countries and the European Union. Similarly, like other forums, it works to address major issues including international financial stability, sustainable development, and climate change alleviation.
The members of G20 are Australia, China, Canada, Brazil, Argentina, Saudi Arabia, South Africa, France, Germany, Indonesia, Italy, Japan, Russia, India, Republic of Korea, Mexico, Turkey, United States, United Kingdom, and European Union.
Australia supports the policies of the G20 for the global economy and a rules-based trading system. Australia took several steps during Covid-19 and published its G20 action to support world trade and investment in response to Covid-19.
Corporate tax for big Businesses
Corporate tax sets a minimum of 15% on the profits of big businesses is expected to be announced on Sunday. It is expect to be in force by 2023. The tax will raise additional revenue for governments. However, according to the Wall street journal, the US additional revenues from a minimum corporate tax will be 15 times those of China. Hence, for some countries, the benefit is more than others.
G20 summit is ahead of the much-awaited COP26 summit on climate change in Glasgow. Some belief, what happens in G20 may set the tone for the COP26 summit. G20 Summit was open by Italy’s Prime Minister Mario Draghi. With a message for the world leaders that, ‘’ going it alone is simply not an option. We must do all we can to overcome our differences.’’
Talking to BBC, UK Prime Minister Boris Johnson explains climate Change as ‘’ the biggest threat to humanity’’. Actions must be taken on an urgent basis to tackle this issue.
Though G20 summits put priority to address the urgent issues, however, experts believe what matters is actions, above all on climate change. And it will play a huge part in determining whether these summits are successful or fail.
