The proposal to set a global minimum corporation tax was opposed by the Conservative party put forth by US President Joe Biden that would see corporations unable to avoid paying tax.
Labour’s proposal to initiate a global minimum tax has failed to gain votes that will force the corporate world to pay a minimum corporation tax.
If successful the tax would have pushed the Conservative chancellor Rishi Sunak to publish a review of how a minimum tax of 21% or 25% would affect tax payers. The Conservative party claim the proposal needs reform.
Think tank Tax Justice UK estimated the move would have raised approximately £13.5 billion that would have benefited the UK. Funds that could be put to good use in community schemes, the NHS and other reforms.
Labour minister and Shadow treasurer James Murray has said the UK is now “…the only G7 country not to back the US plan”.
Previously, Sunak proposed a minimum 25% corporation tax to be activated by 2023. Many have argued that a proposed global tax minimum would still benefit the UK more than the current state of tax payments by large multinational organisations.
Labour MP Zarah Sultana said: “If you’re ever in doubt about whose side the Conservatives are on: Tonight MPs voted on a proposal for a global minimum corporation tax, a plan that would stop big businesses like Amazon from dodging billions of pounds worth of tax. The Conservatives voted it down.”
Less than 5 months ago, a Guardian investigation uncovered Rishi Sunak did not declare wealth held by his wife, Akshata Murty, in the billions estimated to be valued more than the Queen’s financial worth. Not only is this a breach of ministerial code but it may call into question the motivations behind Conservative opposition to the bill.