G7 agreement is a welcome step for global tax justice

07/06/2021

Germany's Finance Minister, Olaf Scholz, during a G7 meeting in London, United Kingdom, on Saturday 5 May. Photo: PRESSASSOCIATION

Germany's Finance Minister, Olaf Scholz, during a G7 meeting in London, United Kingdom, on Saturday 5 May. Photo: PRESSASSOCIATION

Cooperation between the world’s wealthiest nations to fix the broken international tax system is firmly on the horizon, the Party of European Socialists said today as it welcomed the G7’s decision to support a global minimum corporate tax rate.

This landmark deal is a big step forward for progressive efforts to tackle tax havens that rob countries across the globe of much-needed tax revenue. The PES is pushing for global tax justice to make sure the world’s most profitable companies pay their fair share towards the recovery from the coronavirus pandemic. A minimum global tax rate would stop unhealthy tax competition between companies and countries.

PES President Sergei Stanishev said:

“This agreement shows once and for all that cooperation between the world’s wealthiest nations is possible to fix the broken international tax system. There is no going back, the world can and must act for fair taxation.

“People can see that multinationals are not paying their fair share, and tax scandals worldwide have made it obvious that action is needed. Tax justice has always been high on our political agenda, and now we demand a fair solution for all.

“Thanks to the efforts of Olaf Scholz, Nadia Calviño and other socialists and social democrats, global taxation is on the agenda. We also welcome Commissioner Paolo Gentiloni’s confirmation that the European Commission will contribute actively to making it happen.

“The PES will remain vigilant to ensure that large wealthy companies do not find loopholes to once again shirk their responsibilities. Paying your taxes is not optional, it is your social duty.”

On Saturday, the G7 agreed in principle to a global minimum corporate tax rate of at least 15%. The agreement will be discussed in detail at a meeting of G20 finance ministers in Venice in July.