UK's Rishi Sunak calls for progress at G20 to finalise historic tax deal

Chancellor will call on finance ministers to support global agreement

The UK Chancellor of the Exchequer, Rishi Sunak, has called for global finance leaders to maintain momentum in final negotiations for a historic tax deal.

Mr Sunak made the call before the meeting of G20 finance ministers and central bank governors in Venice on Friday.

A total of 131 countries representing 95 per cent of the world's gross domestic product have signed up to a deal on global tax reform, building on the agreement reached when Mr Sunak hosted G7 ministers in London last month.

The deal will change international rules so that large multinationals pay their share of tax in the countries in which they they do business.

It will introduce a global minimum rate that ensures multinationals pay tax of at least 15 per cent on profit in each country in which they operate.

During his two-day visit, Mr Sunak will try to ensure global partners agree to introducing the plan by the October deadline set by the Organisation for Economic Co-operation and Development.

At the G7 in London we achieved agreement on reforms that will ensure the right companies pay the right taxes in the right places," Mr Sunak said before flying out.

"That provided the foundations for an historic agreement amongst more than 130 countries.

“Now is the time for the international community to rally together and build on this momentum to ensure we get the deal’s final details over the line by October.”

He will also encourage ministers to accelerate action on environmental issues, urging them to make climate change central to financial and economic decisions.

Mr Sunak wants the group to make climate-related disclosures mandatory and support work by the International Financial Reporting Standards Foundation to develop sustainability reporting standards.

He will try to ensure the global financial system plays its part in the transition to net-zero emissions, as investors better understand how companies are managing climate risks.

Mr Sunak will also try to build on the G7’s progress on support to poor and vulnerable countries.

He will urge swift implementation of the International Monetary Fund's $650 billion special drawing rights allocation.

Mr Sunak will urge richer countries to consider voluntary channelling of SDRs to reach a global target of $100bn for countries most in need.

Updated: July 8th 2021, 11:18 PM