18 OCT,2021 | MEDC
A global agreement on taxing multinational corporations (MNCs) is now necessary due to several reasons. With the rising dominance of digital technology and intellectual property, it has become easier for MNCs to avoid taxes in their home countries or wherever their income is being generated, by shifting profits to lower-tax jurisdictions. India has also suffered due to this. As a party to the global agreement on taxing MNCs worldwide, India needs to be careful and ensure that its interests are protected. Given the rising potential for digital services in the country, it is important to ensure that the government does not lose out on revenue, and that MNCs pay their fair share in India. Being an international agreement, effective implementation would depend on how the interests of all stakeholders are accommodated. Without being, in any way, unfair to MNCs, no one can afford any disagreements here, as they could end up damaging global trade.
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