G7 Group Finance Ministers Reach Consensus On Levy Digital Tax

According to the Spanish ABC daily, G7 group (including the United States, Germany, France, the United Kingdom, Italy, Canada and Japan) held the G7 finance ministers meeting in the Chantilly town of Paris, capital city of France. The finance ministers of G7 reached the consensus for the first time to levy a digital tax on the virtual online operation of large digital technology enterprises, but the specific tax rate has not yet been discussed. At present, most of these enterprises are concentrated in the United States, such as Google, Apple, Facebook and Amazon. Recently, France has formally adopted the "Google tax (GAFA)" in July 11, 2019, and the United Kingdom and Spain also actively plan to establish this tax system.

French economy and finance minister Lemel (Bruno Le Maire) said that this is a major global decision to move towards a more equitable and efficient first step towards the world tax system. In the future, the company entity will pay taxes on its transactions regardless of which country it is based on. The G7 group has asked the organisation for economic co operation and development (OCDE) to draft an outline of the future global digital tax structure. G7 will draw up the content of the agreement and propose an initiative at the G20 summit held in spring or summer 2020.

During the G7 group meeting, all countries warned Dagalo about the issue of encrypted currency Libra, which threatens to jeopardize the global economy. The president of the French central bank, Dagalo (Fran OIS Villeroy de Galhau), said that the Facebook issue of Libra would seriously affect the international payment system. In the face of this challenge, all countries should unite and cooperate together.