New Delhi, June 8 (TIWN) The Confederation of All India Traders (CAIT) has hailed and appreciated the agreement reached out between members of Group of Seven (G7) at their meeting on Saturday where the world's richest nations agreed to close cross-border tax loopholes used by some of the biggest multinational companies and have decided to back a minimum global corporation tax rate of at least 15 per cent.

This move, though at a very preliminary stage and if implemented, will certainly put checks and balances on the business practices of multinational companies and could be termed as a most progressive step which will bring a diagonal reform in international taxation system having vital bearings on the working of large number of multinational companies who are devising ways and means to avoid the tax liability to the exchequer of consuming countries, CAIT said. 

However, the rationale of such levy is justified only when fair amount of such tax goes to the country where the goods or the services have been consumed, it added.