German Finance Minister Wolfgang Schaeuble warned UK for large scale reduction of corporate tax, as until being member of EU, the country should respect the rules in the block. Even after Brexit, the country will still be bound to the agreements of the Summit of G20 in Antalya an year ago.
“Britain is still a member of the European Union”, said Schaeuble in response to a question, whether Britain plans to reduce corporate tax could lead to a dumping competition. “So they are bound by EU laws. You are required to keep what we promised at the summit of the G20 in Antalya”, added German Finance Minister.
Earlier in the day, British Prime Minister Theresa May, announced that large-scale measures to deal with the economic consequences of the release of the UK from the EU. Britain will seek to have the lowest rate from the all 20 industrial nations, said May during the annual conference of the Confederation of British Industry (CBI). According to analysts, Theresa May intends to lower the corporate tax rate to below 15%. Finance Minister of the United Kingdom, George Osborne, also hinted for the possible rate of 15% already in July.
Earlier today, a spokeswoman for British Prime Minister Theresa May said the government has outlined measures to reduce the corporate tax to 17% by 2020 and identify any talk of further cuts as speculative.
Currently the corporate tax rate in the UK is 20% and in Germany with the inclusion of business tax – about 30%.
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