US Secretary of the Treasury Janet Yellen spoke with Finance Minister Nirmala Sitharaman on Tuesday and discussed that the US and India have a shared interest in implementing a robust global minimum tax.
“Earlier today, Secretary of the Treasury Janet L. Yellen spoke with Finance Minister of India Nirmala Sitharaman. Secretary Yellen discussed that the United States and India have a shared interest in implementing a robust global minimum tax,” the US Department of the Treasury said in a release.
The treasury department statement said that Yellen stressed the importance of partnership with India in the G20 and OECD to seize a once-in-a-generation opportunity to remake the international tax system to help the global economy thrive.
Earlier this month, the Group of Seven (G7) advanced economies announced that they have come to a preliminary agreement to set a global minimum corporate tax rate of 15 percent.
The proposal will next go to the OCED (Organisation for Economic Co-operation and Development) and G20 countries for further discussion.
According to the experts, the major economies have been aiming to prevent multinational companies from shifting profits to low-tax territories regardless of where their sales are made.
Back in March, Finance Minister Sitharaman held a discussion on global economic outlook with Yellen, wherein the latter appreciated India’s contribution to the world’s vaccine efforts.