Politics

Work plans vote on Joe Biden’s International Company Tax Charge Plan

NICHOLAS KAMM via Getty Images

Labor will trigger a Commons vote on Monday to force the government to back Joe Biden’s plan for a global minimum corporate tax rate.

Rachel Reeves, the shadow chancellor, said the US president’s proposed global pact would “bring in additional taxes for the UK.”

However, the UK has not agreed to the plan, which is expected to be discussed at the G7 summit in Cornwall next month.

Biden initially proposed a global minimum rate of 21%. The US has now put forward a plan for a “floor” of 15%.

And has called for discussions to further increase this rate.

Labor has tabled an amendment to the finance law that supports the plan.

The government has insisted that it wants an international solution to the “tax challenges” posed by the rise of tech giants and the digital economy.

However, it has been argued that the reform should focus on making multinational companies pay more taxes in the countries where they make sales and operate.

Reeves said: “The Conservatives have a choice: they can join Labor to fight tax avoidance on a large scale, or they can allow billions of pounds to leave the UK.

“This global pact will add extra taxes to the UK while preventing large multinational corporations and online giants from undercutting our business.

“By making sure they pay their fair share in the UK, we can level the playing field for our brilliant businesses and build an economic recovery with thriving industries, strong public services and good, safe jobs for all.”

Labor indicated that Germany, France, Canada, Italy and Japan supported Biden’s proposal.

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