Brussels is set to delay plans for its controversial digital levy until the autumn in an effort to boost the prospects of a global corporate tax reform deal.
The move followed the endorsement by G20 finance ministers in Venice over the weekend of a landmark global tax deal reached by G7 nations last month to set a worldwide minimum rate and to overhaul taxing rights.
The European Commission had come under intense pressure from US Treasury secretary Janet Yellen to shelve its digital tax proposal, according to people familiar with the discussions.
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