G20 backs global minimum tax deal, pledges to ‘safeguard’ Covid-19 recovery, watch inflation
- The Group of 20 (G20) major economies have endorse a tentative deal for a global minimum corporate tax of 15 per cent
- G20 finance ministers also vowed to support the global economy amid rising inflation pressures and an uneven Covid-19 recovery
Finance leaders from the Group of 20 (G20) major economies on Wednesday endorsed a global deal to revamp corporate taxation and pledged to sustain fiscal support for their economies while keeping a close eye on inflation.
The finance leaders noted in their statement that economic recovery “remains highly divergent across and within countries” and is vulnerable to new variants of Covid-19 and an uneven pace of vaccinations.
“We will continue to sustain the recovery, avoiding any premature withdrawal of support measures, while preserving financial stability and long-term fiscal sustainability, and safeguarding against downside risks and negative spillovers,” the G20 finance leaders said in the statement.
Given rising inflation pressures driven by supply chain bottlenecks and shortages as economies struggle to normalise, the leaders said that central banks are “monitoring current price dynamics closely.”
“They will act as needed to meet their mandates, including price stability, while looking through inflation pressures where they are transitory and remaining committed to clear communication of policy stances,” the G20 communique said.
