G7 Global Tax Agreement

Lord Hannan of Kingsclere Excerpts

Tuesday 8th June 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, the digital sales tax was always intended to be a transitional approach. The UK Government’s preferred solution has always been an international agreement. We are only part of the way through negotiating that but the agreement reached at the weekend represents important progress.

[Lord Hannan of Kingsclere (Con)]

My Lords, if tobacco taxes discourage smoking and carbon taxes discourage pollution, what do business taxes do?

[Baroness Penn (Con)]

My Lords, a global minimum rate of 15% will protect against multinational tax avoidance while leaving appropriate room for countries to use corporation tax as a lever to support their economic, fiscal and environmental objectives.