The United States Treasury Department, late on June 29 India time, said that Treasury Secretary Janet Yellen and Finance Minister Nirmala Sitharaman had a phone call in which they discussed the recent G-7 global minimum tax plan.
"Secretary Yellen discussed that the United States and India have a shared interest in implementing a robust global minimum tax," the statement from the Treasury Department said.
"The Secretary stressed the importance of partnership with India in the G20 and OECD to seize a once-in-a-generation opportunity to remake the international tax system to help the global economy thrive," it said. OECD stands for Organization for Economic Cooperation and Development. India is a member-nation of G-20 and OECD.
It is worth noting that there has been no official statement from the Finance Ministry regarding India's stance on the global minimum tax plan. Officials have conceded privately that the proposal and its implications are being examined.
As such, officials contend that since Sitharaman cut corporate tax rates in September 2019, doing so again would go against the principle of tax policy stability.
As per the plan, the G-7 countries have agreed on a new global framework for ending low-tax havens by having a minimum corporate tax of 15 percent and by sharing the excess profits of some of the largest companies within the jurisdictions they operate in.