The French Finance Minister said on Friday that if the broader effort to find an international solution does not make a breakthrough this year, the EU should advance its own digital tax in the first quarter of 2021.
Currently, nearly 140 countries/regions are discussing the first major rewrite of international tax rules in a generation to explain the rise of large digital companies.
With the blueprint for the deal to be reached by the Organization for Economic Cooperation and Development (OECD) next month, the goal of reaching an agreement before the end of the year deadline looks increasingly challenging.
Bruno Le Maire of France told reporters before the European Finance Ministers’ Meeting in Berlin that he hopes to establish a fair and effective international tax system as soon as possible, preferably within the framework of the OECD.
Le Maire said: “If you look at the aftermath of the economic crisis, the only winner is the digital giant.”
“What I want to say is very clear: if there is no consensus at the OECD level by the end of this year… we should provide Europe with a solution, digital taxation, between the beginning of next year and 2021.”
Le Maire accused the United States of trying to disrupt international dialogue in order to update cross-border taxes in the digital age.
The German Finance Minister Olaf Scholz presided over the Berlin meeting because his country is currently the chairman of the 27-member group.
Schultz said: “We are working very hard to develop a blueprint for the OECD’s digital taxation issue.”
Schultz said: “We will work hard to make it possible to reach a global consensus on this issue.” He added that such an agreement is not only a great success for Germany’s EU presidency, but also for the work at the OECD level. . .
The digital tax is a proposal for the EU’s own income to repay debts jointly issued during the COVID-19 pandemic.
The European Union decided in July to jointly borrow 750 billion euros (approximately Rs 65,45,325 crore) in the market and use it to start the economy. This move fell into a severe recession due to the COVID-19 pandemic.
“Ecofin will have to solve many of the problems faced by the COVID-19 crisis, so many months later, when we met in video conferences and other communication methods, we came here and were able to speak together.”
“After we decide to assume very large debts, the EU will jointly resolve this crisis, respond to the crisis and commit to the recovery of Europe, it is necessary for us to also decide how to repay the debt,” Scholes said.
“This means we need to make decisions about Europe’s own resources.
© Thomson Reuters 2020
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