Pharma Heavyweights, Including Pfizer And JNJ Trying To Push Global Tax Deal Amid COVID-19 Role: WSJ

In the face of a comprehensive global tax agreement intended to inhibit tax avoidance opportunities, industry executives and lobbyists are mounting a quiet campaign to push back against the measure, the Wall Street Journal reports.
This time, the pharma industry is using the goodwill garnered by the rapid deployment of COVID-19 vaccines as the new negotiating tool.
In early July, the U.S. achieved international backing from 130 countries for a minimum corporate tax rate of 15%, intended to equitably tax tech companies. Many companies have said they support the deal because it simplifies taxes worldwide, even if it will raise their tax bills, the Journal reports.
Pharma executives, lobbyists, and consultants are mobilizing to fight, as the minimum tax measure could impact pharma's bottom lines, given that many companies sell their products globally. Also, many drugmakers keep their intellectual property offshore to avoid paying more on corporate income taxes domestically.
Drug companies, led by Pfizer Inc PFE and Johnson & Johnson JNJ, have taken a lead role in some of the discussions, the Journal reports. According to the report, one senior tax official with J&J noted that "pharma is going to get hit hard" by the minimum tax rate.
Drugmakers have said that higher taxes could impact research and development that led to the widely deployed pandemic vaccines.
Price Action: JNJ stock is +0.25% at $172.30, and PFE shares are up 0.68% at $42.11 during the market session on the last check Tuesday.
Photo by pina messina on Unsplash

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