The Party of European Socialists strongly welcomes the decision by G20 finance ministers to back plans for a global corporate minimum tax rate.

Under the current proposals, global behemoths like Google, Amazon, Facebook, and Apple – companies that have paid far too little tax for far too long – will pay tax where they make profit, with a corporate tax rate of at least 15%.

The plan was supported by finance ministers from the G20 – whose members account for more than 80% of world GDP and 75% of global trade – at a two-day meeting in Venice, Italy, last week.

PES President Sergei Stanishev said:

“When companies globalise profit, the answer is to globalise tax. That is how we make sure globalisation is fairer for our communities.

“The impact of this deal will be seismic. By finding unprecedented agreement among the world’s largest economies, we can move the needle firmly towards global tax justice.

“European socialists and social democrats have been pushing for this for many years. German Vice Chancellor Olaf Scholz, European Commissioner Paolo Gentiloni and other progressives have led the way. Without them, this historic deal would not be on the table.

“Whilst this proposal is global in its scope, its effects will be local. If agreed, the world’s wealthiest companies will no longer be able to negotiate minuscule tax rates that rob government of the revenue needed to run society. It will mean more money for our communities, better public services and a stronger recovery. We want to see G20 leaders give the green light to a strong deal in October, with a corporate tax rate of at least 15%.”

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