Rishi Sunak to rally US to agree to G7 tax on tech giants
Rishi Sunak will call on his US counterpart Janet Yellen to help coordinate an international tax on tech giants like Amazon at the upcoming G7 summit.
Sunak has already said that one of his priorities at the G7 summit, which will be held in Cornwall this year, will be to get the ball rolling on an internationally agreed tax on the globe’s largest internet firms.
The Treasury unilaterally implemented its own digital services tax last year on online marketplaces, like Amazon and Asos, for the business they do in the UK, however the chancellor has said it is only a stopgap until when a global tech tax can be agreed.
“One of my priorities in the G7 this year, which I’ve already started work on, is to try and get international agreement on a new way to tax these companies,” Sunak said.
“I spend a lot of time talking to my finance minister colleagues around the world about this issue.”
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International agreement is needed on the tax as the Organisation for Economic Co-operation and Development (OECD) oversees treaties on how profits of multinationals are taxed.
A Treasury source told the Sunday Telegraph: “The US has signalled now an openness to engage constructively in the debate and try to reach resolution on it, which is really positive. He has spoken to Janet Yellen specifically about this.”
The chancellor will release responses to government consultations on a range of new taxes on 23 March, which could pave the way for a new online sales tax.
Around 30 taxes could be in line for reform, including business rates and air passenger duty.