G20 gears up for historic deal on global tax

Finance ministry stated in a tweet on Saturday that minister Nirmala Sitharaman was virtually participating in the meeting that started on Friday. “Today’s discussions are focused on policies for recovery, sustainable finance and international taxation,” Sitharaman stated. G20 leaders are expected to come out with a statement on a possible deal after the meeting.

Sitharaman had last month shared India’s expectations and suggestions about the final shape of a global tax framework with US treasury secretary Janet L. Yellen, over a call. The US department of treasury stated in a statement on 29 June quoting Yellen that the US and India have a shared curiosity in implementing a strong global minimum tax. Sitharaman had also conveyed that India was committed to talks towards a sustainable and easy to implement solution.

India appears forward to taxation rights over tech giants such as content streaming, social media and search engine businesses that access Indian consumers remotely. A deal would also set a 15% global minimum tax. It remains to be seen how the fine print of a deal emerges.

Sitharaman also shared her thoughts on key elements of economic recovery. “In policies for recovery session, finance minister mentioned three catalysts of economic recovery–digitalization, climate action and sustainable infrastructure; shared India’s successful experience in integrating technology with inclusive service delivery during the pandemic,” stated the finance ministry’s tweet.