Minimum global tax rate should be 25%, says World Inequality Report

A higher rate of 25 per cent will reduce the risk of such a counterproductive outcome

The World Inequality Report, released recently, has suggested raising the proposed global minimum tax rate on multinationals from the 15 per cent, which is agreed upon now. It said the 15 per cent rate would lead to a race among countries to reduce their corporation tax rates to that level, a risk that would reduce if the rate was raised to, say, 25 per cent.

It calculated a 15 per cent tax rate would result in a €500-million tax gain a year for India without a carve-out and €400-million tax gain a year with a carve-out.

On the other hand, a 25