NEW DELHI: Finance Minister Nirmala Sitharaman said on Wednesday that tax administrations of BRICS countries must strengthen their collective voice in the ongoing renegotiation of international tax rules.
Addressing the inaugural session of the BRICS Tax Heads meeting here, Sitharaman said that BRICS countries are large developing economies and source jurisdictions that have built significant domestic tax capacity from a low base, and their perspective is essential to making these negotiations fair and lasting. India has proposed two new working groups, one on international taxation and transfer pricing, and the other on revenue statistics, as part of efforts to build institutional mechanisms that continue beyond India’s 2026 chairmanship. Sitharaman said the two groups are intended to create institutional space for addressing issues faced by BRICS tax administrations.
"Transfer pricing disputes cost developing countries’ administrations disproportionately. Revenue frameworks that don’t fit our system realities distort how we are seen and how we see ourselves," she observed. The groups are designed to outlast India’s chairmanship, Sitharaman said. China will take over the BRICS chairmanship in 2027.
Sitharaman also highlighted that tax administrations are moving from paper-based and relationship-dependent processes to data-driven and digital systems. She added that India’s experience with faceless assessment, pre-filled returns, real-time invoice authentication and AI-enabled taxpayer assistance has attracted interest from BRICS partners. (IANS)
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