Arab Press

بالشعب و للشعب
Tuesday, Mar 24, 2026

Sunak urged to back Biden corporate tax plan ‘worth £13.5bn a year’

Sunak urged to back Biden corporate tax plan ‘worth £13.5bn a year’

Campaigners say US global blueprint would help raise billions from multinationals and tech giants

Rishi Sunak has been urged to throw his full weight behind US proposals for a global minimum corporate tax rate after analysis showed it would bring in an extra £13.5bn a year for the public purse.

The campaign group Tax Justice UK said the Biden administration plan would help raise billions of pounds a year for the UK exchequer by hitting multinationals and US tech companies operating in the country with higher tax bills, including firms such as Amazon, Apple, Google owner Alphabet and Facebook.

Under the US blueprint, the world’s 100 most profitable multinationals would be forced to pay taxes to national governments based on the sales they generate in each country, irrespective of where they are based. It would also establish a global minimum tax rate to help bring an end to profit-shifting by multinationals and discourage countries from undercutting each other on tax rates. Washington has suggested a rate of 21%.

Finance ministers from across Europe – including from Germany, France and the Netherlands – have welcomed the US intervention as a signal that significant global progress can be made on tackling tax avoidance by big companies and digital firms.

However, tax campaigners said the UK government had been silent on the US plans, and urged the chancellor to give his full backing to Washington. The Labour shadow chancellor, Anneliese Dodds, also said Britain needed to play a leading role.

“Now that President Biden has moved the debate on, it’s important that our government moves to play its part,” she said.

Paul Monaghan, chief executive of the Fair Tax Mark campaign group, said other big European countries and the International Monetary Fund had responded publicly to the plan. “But we’ve heard nothing from Boris Johnson or Rishi Sunak in the UK as yet,” he said.

“The world has a once in a generation opportunity to embed tax justice and eradicate profit-shifting. It’s vital the UK steps up to the plate and publicly backs what the US and other progressives are trying to do.”

It is understood the UK Treasury recognises the need for an agreement on a global minimum tax rate as part of negotiations taking place at the Organisation for Economic Co-operation and Development (OECD), which is coordinating talks on tax reform between 135 nations.

However, sources said ministers wanted to make sure any solution was balanced and appropriately targeted, while also pointing to a track record of UK leadership on global tax reforms through the launch of a digital services tax last year. Designed as an interim measure before a global deal can be reached, the levy targets the British revenues of search engines, social media services and online marketplaces, and is similar to arrangements in France, Italy and Spain.

A Treasury spokesman said: “We welcome the US administration’s renewed commitment to reach a global solution this year.”

“Updating the international tax rules to ensure that digital businesses pay more tax in the UK, in line with their economic activities, remains a UK priority, and we will continue to work openly and constructively with international partners to develop a consensus-based solution.”

Negotiations at the OECD are expected to centre on the threshold for determining which companies are in scope, as well as the rate for a global minimum. Although aiming for a deal by mid-2021, significant hurdles remain given the lower corporate tax levied by some nations. EU members vary from as low as 9% in Hungary and 12.5% in Ireland to 32% in France and 31.5% in Portugal.

Tax Justice UK said establishing a minimum rate would bring substantial benefits, including more tax revenue for the exchequer, and addressing public anger at tax avoidance by major companies.

According to research for the group by international experts, setting the global rate at 15% would bring in an extra £8.2bn a year for the UK government, while a rate of 20% would generate £13.5bn.

Setting the minimum at 25%, the level at which Sunak will peg the UK’s domestic corporate tax rate at from 2023, up from a current level of 19%, would bring in an estimated £22.3bn, while a rate of 30% would raise £31.6bn annually.

Robert Palmer, executive director of Tax Justice UK, said: “The government should stand up and support these proposals. The UK and its tax haven network have long promoted a global race to the bottom on corporate taxes – this needs to end.”

Comments

Oh ya 5 year ago
Yup the bankrupt US government now wants to set tax rates in the entire world. The world needs to tell the US to get stuffed. Anything the US does around the world is for their gain not anyone else's

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Trump to Deliver Keynote Address at Saudi-Backed Investment Summit in Miami Beach
Saudi Arabia and Kuwait Press Ahead With Energy Agreements Despite Regional Conflict
Can Saudi Arabia’s Yanbu Port Replace Hormuz? Capacity Limits Test Critical Oil Lifeline
Saudi Arabia Detects Ballistic Missiles as Regional Tensions Escalate in Gulf
Saudi Aramco Reduces Oil Shipments to Asia for Second Consecutive Month
Saudi Aramco Reduces Oil Shipments to Asia for Second Consecutive Month
Saudi Arabia and UAE Push Ahead With Major Deals Despite Iran-Related Uncertainty
Formula One Cancels Bahrain and Saudi Arabia Grands Prix Amid Escalating Regional Tensions
Pakistan Signals Strategic Realignment Toward Saudi Arabia Amid Regional Tensions
Saudi Arabia Cuts Oil Shipments to Asia as Regional Conflict Disrupts Key Export Routes
Saudi Arabia Moves to Contain Regional Escalation as Houthis Signal Readiness to Join Conflict
Saudi Arabia Signals Independent Nuclear Strategy Unaffected by Iran Tensions
Saudi Arabia Signals Independent Nuclear Strategy Unaffected by Iran Tensions
Egypt Reaffirms Strong Support for Saudi Arabia as Sisi Condemns Iran’s Gulf Attacks
Saudi Stocks Close Higher as Tadawul Index Gains 0.55% on Broad Sector Strength
Iran Fires Ballistic Missiles Toward Riyadh as Gulf Conflict Intensifies
Barcelona Midfielder Marc Casadó Attracts €40 Million Interest from Saudi Clubs
Strait of Hormuz Tensions Rise as Saudi Arabia Opens Key Air Base to US Forces
Saudi Arabia Confronts Strategic Turning Point as Iran Conflict Redefines Regional Alliances
Saudi Arabia Intercepts Missile as Two Others Land in Remote Area Without Casualties
Saudi Expulsion of Iranian Military Attaché Raises Doubts Over Fragile Riyadh–Tehran Rapprochement
Saudi Arabia’s Strategic East–West Pipeline Gains Global Attention as Energy Routes Face Growing Risks
Iran Reportedly Reduces Strikes on Saudi Arabia Amid Concerns Over Strong Retaliation
Saudi Arabia Criticises Israeli Strikes in Southern Syria Amid Rising Regional Tensions
Egypt and Saudi Arabia Warn Iran’s Actions Threaten Stability Across the Gulf
Egypt and Saudi Arabia Warn Iran’s Actions Threaten Stability Across the Gulf
Saudi Arabia Unveils Comprehensive 2026 Roadmap to Streamline Company Formation
Saudi-UAE Tensions Reveal Emerging Rivalry at the Heart of Gulf Power Dynamics
Saudi Arabia Launches Gulf Maritime Support Initiative to Safeguard Shipping
Saudi Arabia Expands US Military Access as UAE Braces for Prolonged Iran Conflict
Saudi Arabia Expels Iranian Diplomats Amid Escalating Regional Tensions
Saudi Arabia’s Edarat Wins Major Data Centre Deal with Regional Bank
Iran Intensifies Gulf Offensive as Saudi Arabia Intercepts Dozens of Drones
Regional Powers Hold Security Talks as Turkey Seeks New Strategic Pact
Asian Refiners Urge Saudi Arabia to Revise Oil Pricing Mechanism Amid War-Driven Volatility
Gulf States Weigh US Base Access and Military Alignment as Iran War Intensifies
IRGC Claims Strikes on Israel, Kuwait and Saudi Arabia as Conflict Widens
Saudi Arabia Intercepts Multiple Drones Amid Continued Iranian-Linked Attacks
Remains of Fallen Soldier Repatriated Following Death in Saudi Arabia
Iran Tensions Challenge Saudi Arabia’s Strategic Shift to Red Sea Oil Exports
Saudi Arabia Turns to Alternative Export Routes as Hormuz Disruption Strains Oil Flows
Saudi Arabia and UAE Move Closer to Backing US-Israeli Campaign Against Iran
Saudi Arabia Signals Readiness for Military Response as Iran Tensions Escalate
Saudi Arabia Warns Oil Could Surge Beyond $180 as Iran Conflict Disrupts Global Supply
Saudi Arabia Reports Drone Strike on Key Red Sea Refinery in Yanbu
United States Urges Citizens to Leave Saudi Arabia Amid Escalating Regional Conflict
Former Media Executive Chronicles Rise of Saudi Crown Prince in New Book
Saudi Aramco–Exxon Refinery in Yanbu Targeted in Latest Wave of Iranian Attacks
Greek-Operated Patriot System Intercepts Iranian Missiles Over Saudi Arabia
Asian Refiners Urge Saudi Arabia to Revise Oil Pricing as War Upends Markets
×