Britain's main opposition Labour Party said it will push for a vote in parliament on Monday over support for US plans to introduce a global minimum corporation tax rate.

People crowd the street after Major sectors of the UK society have reopened on Monday, May 17 in London, United Kingdom as coronavirus restrictions are further eased across England, Wales, and parts of Scotland. Photo: VCG

The US Treasury Department earlier this week said it would accept a floor of at least 15 percent during international negotiations, a rate significantly below its proposed 21 percent minimum for US multinational firms. The Biden administration's proposed Global Intangible Low-Taxed Income tax (GILTI) rate of 21 percent, aimed at capturing revenue shifted by companies to tax-haven countries, was widely viewed as a starting point for renewed OECD talks on a global minimum tax.

While France and Germany backed 21 percent, other countries have pushed for a lower rate, as previous OECD discussions on the subject had centered around 12.5 percent, the same rate charged by Ireland.

Britain will raise its main corporation tax rate to 25 percent from 19 percent in 2023, finance minister Rishi Sunak announced earlier in 2021.

Labour is tabling an amendment to the Finance Bill.

"This global pact will bring in extra tax benefitting Britain, while stopping huge multinationals and online giants from undercutting our businesses," said Labour finance spokeswoman Rachel Reeves. Britain's finance ministry has said reaching an international agreement on how large digital companies are taxed "is a priority. However, it also matters where the tax is paid and any agreement must ensure digital businesses pay tax in the UK that reflects their economic activities."