UK wants more G7 progress on climate finance, aims for tax reform

The British Chancellor of the Treasury (Minister of Finance) Sage Craze attends a virtual press conference on 3 March 2021 inside 10 Downing Street, Central London, UK. Reuters / File Photo via Tolga Ekman / Pool

UK Finance Minister Sage Craze, following a meeting with other finance ministers and central bankers in the UK on Friday, called for more progress to be made to ensure greenhouse gas emission reduction support to financial markets.

The UK Finance Ministry said the craze is constantly demanding international regulations on how companies report their climate impact, so that investors can make more informed decisions.

The UK will host a face-to-face meeting of finance ministers in London on 4-5 June, when the craze also hopes to negotiate an agreement between the G7 countries on a common approach to trade taxation.

The United States has proposed a minimum overall corporate tax rate of 15%, well below the G7 levels, but higher than some countries such as Ireland. But Britain is concerned that plans to tax tech giants such as Amazon, Google and Facebook are not far off.

After chairing Friday’s virtual talks, Sank said, “I look forward to next week’s meeting as we continue to work together to support jobs and secure green and global economic recovery, including the global economy.” And central bank digital currencies have also been addressed. “

US Treasury Secretary Janet Yellen said at the meeting that it was important to provide additional budget support “to promote a strong and lasting recovery from the epidemic”, the US Treasury said.

On Friday, the White House unveiled a $ 6 trillion budget proposal aimed at increasing spending on infrastructure, education and the fight against climate change. Read more

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Irish Finance Minister Pascal Donohoe – who attended the meeting as chairman of the eurozone group of finance ministers – said the COVID-19 epidemic had increased the need for international cooperation.

“As we emerge from this crisis and open up our economies (…) we will need policies to help build, develop and adapt,” he said.

Tax challenge

Some sources involved with Friday’s talks said that a tax deal could be reached early next week.

But others are more pessimistic and expect more ambiguous statements of principles than an agreement at a specific minimum rate.

When Prime Minister Boris Johnson hosts the G-7 Heads of Government meeting on 11–13 June, Britain will have one more chance to come to an agreement.

An official of France’s finance ministry said after Friday’s meeting that a clear statement from the G7 would increase the opportunities for international consensus needed at the G20 meeting in July, which includes major emerging economies.

The Paris-based Organization for Economic Cooperation and Development has tried over the years to make global tax reforms primarily through the G20.

In the absence of progress, the UK imposed a digital services tax on tech companies with global revenues of over £ 500 million ($ 710 million) in 2020 and UK sales of over £ 25 million. France took a similar step in 2019.

The United States has threatened to tax these measures and wants them removed as part of a global tax deal. The UK does not want a deal that increases overall revenues but cuts taxes paid by foreign companies in the UK.

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