Global minimum tax may impact India's special rate on manufacturing firms

US proposal to raise the global corporate tax rate to 28% from 21% might face resistance from countries unwilling to give up their edge and compete with America on its terms

Global minimum corporate tax: There is a lot of buzz around the global minimum tax, with the United States, which has been pressing hard for its imposition, finding support from IMF and some advanced countries. However, the tax may have repercussions for developing countries such as India, based on the rate agreed.

The tax is part of Pillar-2 of the Base Erosion and Profit Sharing (BEPS) framework of The Organisation for Economic Co-operation and Development (OECD). Of all discussions in the BEPS framework, the main interest of the US lies in Pillar-2, as it aligns with the recently unveiled Made-in-America