Global Minimum tax

India and other developing countries(Group of 24 countries that includes India) have objected to a provision in a multilateral convention that bars nations from enacting any future digital services taxes such as equalization levy.

What is the Global minimum tax?

• The global minimum corporate tax rate, or simply the global minimum tax (abbreviated GMCT or GMCTR), is a minimum rate of tax on corporate income internationally agreed upon and accepted by individual jurisdictions. 
• Each country would be eligible to a share of revenue generated by the tax. 
• The aim is to reduce tax competition between countries and discourage multinational corporations (MNC) from profit shifting to achieve tax avoidance.