G20 finance chiefs back tax deal, pledge to sustain recovery, watch inflation

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Flags of G20 countries are seen outside the G20 venue before the start of the G20 summit of major world economies in Cannes on November 3, 2011. REUTERS/Dylan Martinez/Files
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WASHINGTON (Businesshala) – Finance leaders of the G20 major economies on Wednesday backed a global deal to reform corporate taxation and a premature release of fiscal support, keeping a close watch on inflation, according to a final draft release seen by Businesshala. Promised to avoid return.

G20 finance ministers and central bank governors also called on the International Monetary Fund to set up a new trust fund worth $650 billion to issue IMF monetary reserves to a wide range of vulnerable countries.

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The G20 finance leaders said in the statement, “We will continue the recovery by avoiding any premature withdrawal of support measures, while maintaining financial stability and long-term financial stability, and guarding against downside risks and negative spillovers.” “

Noting rising inflationary pressures due to supply chain constraints and shortages as economies struggle to return to normal, leaders said central banks are “closely monitoring current price dynamics.”

“They will act as necessary to meet their mandates, including price stability, given inflationary pressures, where they are temporary, and remain committed to clarifying policy stances,” the G20 release said.

He also promised to work in the coming months to address the shortage of equipment to fight the COVID-19 pandemic in low- and middle-income countries, including vaccines, therapeutics and diagnostics.

G20 finance leaders are meeting in Washington on the sidelines of the annual meetings of the IMF and the World Bank, which will discuss the adoption of a 15% minimum corporate tax by 136 countries and partially reallocating tax rights to those countries for large profitable multinationals. where they sell the products and services.

The G20 leaders backed the OECD tax agreement and called for the rapid development of so-called “model rules” to guide countries’ implementation of the deal and “ensure that the new rules will apply globally in 2023.”

Reporting by David Lauder and Andrea Schallal, Editing by Rosalba O’Brien and Andrea Ricci


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