Here's the latest Argus column by Blaenau Gwent MP Nick Smith:

MOVES to reform tax rules for companies like Amazon, Google and Facebook are long overdue and very welcome.

This is an issue I have been raising for years now – it was in 2013 that I first urged the UK Government to crack down on Amazon in particular.

The G7 deal is a good first step to bringing some of these tech giants into line but, unfortunately, does not go far enough.

A global corporate tax rate of at least 15 per cent, is a big watering down of the 21 per cent that Labour – and US President Joe Biden - had called for, with Britain being the only G7 country not to back the proposed higher rate.

This would have brought in an extra £131 million per week for the UK that could and should have been used to boost our NHS and other public services.

MORE NEWS:

Also, under the new deal Amazon will still fall short of paying its fair share.

Although the company made more than $386 billion in sales last year, it runs its online retail business at a low profit margin of 6.3 per cent. The company therefore currently does not meet the 10 per cent threshold, side-stepping the new global tax rate.

If we are serious about tackling tax avoidance these are the sort of loopholes that have to be closed.

For too long it has been too easy for massive companies to avoid paying their fair share.

Numerous tax justice campaign groups have spoken out about how insufficient the 15 per cent rate will prove to be.

There has been mention of the 15 per cent being a starting point, with the aim being to raise the tax higher at a further date.

The G7 agreement must be treated as a building block for a future arrangement that involves a more ambitious minimum global tax rate.

This is not just about raising money to spend on our public services, this is about preventing large multinationals and tech giants from undermining UK businesses.

It’s about preventing British businesses that pay tax here being undercut by companies that are able to shift their profits overseas.

If these firms are forced to pay their fair share, we can level the playing field and give UK businesses a chance to thrive.

We should be looking to put things right, force these tech giants to stump up, pump some much-needed funds into our public services and help back British businesses.