Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki announced on the 18th that “reasonable consideration is necessary for the characteristics of the industries included” in relation to the remaining issue of digital tax pillar 1 (distribution of taxation rights in the country of sales).
Deputy Prime Minister Hong attended the first G20 finance ministers and central bank governors meeting via video held in Jakarta, Indonesia for two days from the 17th and said, “The discussion on follow-up measures such as signing multilateral agreements and preparing model regulations was also promptly and productively. It has to go on,” he said.
This meeting was the first meeting of finance ministers and central bank governors led by Indonesia, the chair country of the G20 this year.
At the meeting, Deputy Prime Minister Hong said, “In the process of transitioning to a low-carbon economy, we need to come up with an optimal policy combination that includes price instruments such as the emission trading system and non-price instruments such as fiscal and regulation.” He urged that policy recommendations should be prepared in consideration of the circumstances of each country.
Regarding the global economy, he said, “We are facing an expansion of downside risks such as macro-policy normalization, supply chain disruption, and inflation, and recovery of inequality.” He emphasized the rapid progress of discussions on vaccine dissemination and global health cooperation system.
As a co-chair of the G20 International Financial System Working Group, Deputy Prime Minister Hong also mentioned the need for prompt operation of the International Monetary Fund (IMF) Recovery and Sustainability Fund to improve procedures for accelerating debt restructuring in low-income countries and to support mid- to long-term tasks in vulnerable countries.
At the same time, it announced plans to donate 900 million special drawing rights (SDR) to the IMF Recovery and Sustainable Fund and support the IMF Poverty Eradication Fund, and requested participation.
He also suggested preparing specific guidelines for resolving the digital divide, such as preparing a unified classification system to promote private investment in sustainable infrastructure, expanding educational infrastructure to bridge the digital divide following the revitalization of the non-face-to-face economy, and supporting digital transformation for SMEs and small business owners.
/yunhap news
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