Chancellor ‘confident’ about reaching tech tax deal

Rishi Sunak has said that he is confident about reaching a global agreement on a digital tax.

Ahead of the first in-person G7 meeting in two years, the chancellor said he believes world finance leaders can make “significant progress” in tackling some of the world’s most pressing economic challenges, include a tax on BigTech companies.

Sunak told the BBC that the meeting would help ensure the way large, global, and “especially digital” companies are taxed is fair and “fit for the modern age.”

“I’m confident we can make progress on all these fronts,” he said.

Last month, the US proposed that multinational companies should be taxed at a minimum of 15 per cent, which is less than an original proposal of 21 per cent.

At the time, while France, Germany and Italy were reportedly pleased with the new tax rate, the UK did not endorse it.

"Our consistent position has been that it matters where tax is paid and any agreement must ensure digital businesses pay tax in the UK that reflects their economic activities," a British finance ministry source said in May. "We welcome the U.S.'s renewed commitment to tackling the issue and agree that minimum taxes might help to ensure businesses pay tax – as long as they are part of that package approach.”

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