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India, along with two other countries, "blocking" proposal to tax big tech

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The French finance minister, Bruno Le Maire, was speaking ahead of the G-20 meeting of finance ministers in Japan. He lamented the stance of the US, India, and China. 

This tax proposal, if ratified by an international convention, "aims to distribute corporate tax profits of the world's 100 biggest companies to countries wherever they sell goods and services."

"Let's face it, today, progress is blocked, notably by the United States, Saudi Arabia, and India. We will plead for a resolution to the impasse regarding pillar 1 of digital taxation. 

However, the chances of success are slim," Le Maire told reporters during a press briefing in Paris ahead of a meeting of G-20 finance ministers in India on February 24 and 25.

The first "pillar" of a global tax overhaul negotiated at the OECD aims to allocate corporate tax profits of the world's 100 biggest companies to the countries where they generate sales. 

This was ratified by over 135 countries at the OECD and the G-20 in 2021, but it still needs to be ratified by an international convention before it can take effect.

Read More: Salary hike not guaranteed for over 5000 Flipkart employees this year

The Organisation for Economic Cooperation and Development, a club mostly comprising wealthy countries based in Paris, has led discussions on the tax, primarily targeting digital giants.

Each of the three countries has its own reasons for opposing the tax proposals. In the US, it is the Republicans who are opposed to it. 

In Saudi Arabia, the ruling royal family would make the decision. 

In India, the Union government, which has established elaborate IT Rules, has adopted a carrot-and-stick approach to Big Tech, given that it is a significant market. 

Facebook currently has its largest number of users globally in India.

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