TOKYO, June 8 (Reuters) - The Group of Seven (G7) advanced
countries has struck a "historic" agreement for a minimum global
corporate tax of at least 15%, raising momentum for a wider deal
among the G20 major economies, Japanese Finance Minister Taro
He was speaking to reporters after a cabinet meeting on
Tuesday, responding to questions about the G7 tax deal hammered
out at the grouping's weekend meeting in London.
Aso said the G7 tax deal was achieved because countries
realised they could no longer rely on the race to the bottom on
corporate tax cuts to spur growth.
The major factor was that the United States faced falling
tax revenue and massive coronavirus spending, both of which
called for the need to restore fiscal health, paving the way for
a G7 deal, Aso said.
"Now that the course of direction has been shown, the
possibility (of a tax deal) will rise at G20. It had a big
impact on raising the momentum," Aso said.
The G7 comprises the United States, Japan, Germany, Britain,
France, Italy and Canada.
Aso went on to say that he could not tell how the tax deal
might affect corporate behaviour.
"Some of the small countries must have benefitted (from
lower tax rates in attracting businesses) so we must take time
in working out the details, as we aim to build a consensus
through an inclusive framework."
(Editing by Clarence Fernandez and Jacqueline Wong)