Hungary, Ireland, and UK officials have again warned that their countries will not accept the global minimum corporate tax sought under the OECD’s Pillar 2 talks.
Hungarian Finance Ministry state secretary András Tállai, in comments published May 25, reiterated that Hungary considers a global minimum tax an infringement of sovereignty. He said that the global minimum tax is being pushed by several high-tax economic powers that are being disadvantaged by tax competition. He added that while Hungary seeks a good relationship with the US, Hungary will not put another country’s interest before its own.
UK Prime Minister Boris Johnson today somewhat clarified his opposition to the global minimum tax in comments made during Prime Minister’s Questions. Johnson suggested his resistance is based on his reluctance to give up the ability to cut corporate taxes in the future, as noted in a video in a tweet by the Tax Justice Network’s Alex Cobham.
That #pmq clip in full, with @helenhayes_ question and @BorisJohnson replying that the global minimum corporate tax is an obstacle to “the Government’s ability to cut corporation tax” pic.twitter.com/WxWTJzTn7v
— Alex Cobham (@alexcobham) May 26, 2021
Irish Finance Minister Paschal Donohoe told Sky News on May 26 that Ireland also still has significant reservations about a high global minimum tax. He added that Ireland plans to keep its corporate rate at 12.5% in the years ahead, noting the key role it has played in Ireland’s economic development.
Meanwhile, German Finance Minister Olaf Scholz told Reuters that he still believes that agreement on “revolution” in international corporate tax is just weeks away. Scholtz noted that negotiations at the G7, G20, and OECD levels occur almost daily.
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