The leading economies of the world, also known as a group called G7, have come to an agreement on the issue of imposing a corporation tax on Big Tech companies, including Google, Facebook, Amazon and Microsoft. The breakthrough was powered by the US President Joe Biden – who quite unlike his successors, was all for such a tax on the largest and most powerful tech companies in the world, most of which have an American base.

The corporation tax will amount to at least 15%, lower than Biden’s proposal of a 21% tax. In addition, 20% of the profits of the 100 largest tech firms worldwide will be reallocated to markets from where they generated the sales.

The agreement was reached by finance ministers from seven of the richest economies in the world on Saturday. The move will offer some respite from the practice of large multinational companies shifting their profits and tax revenues to so-called ‘tax havens’ in order to evade the high levels of tax charged in their home countries.

Speaking on the issue after the agreement was reached, UK’s finance minister Rishi Sunak stated, “We are going to level the playing field. That’s what this agreement gives us the ability to do, and it has been agreed among G7 colleagues, and once we broaden it out and implement it globally, it is a huge prize for British taxpayers.”