India Calls for Stronger Role of BRICS Nations in Global Tax Regulation

New Delhi, September 23 (Daily Kiran) : In a significant address on September 23, Finance Minister Nirmala Sitharaman urged BRICS nations to strengthen their collective voice in the ongoing restructuring of international tax regulations. Speaking at the inaugural session of the BRICS Tax Heads meeting in New Delhi, she highlighted the necessity of incorporating the experiences and perspectives of developing economies into the global tax framework.

Sitharaman noted that despite limited resources, BRICS countries have established a robust tax administration structure. Their involvement is crucial for making global tax rules more equitable and sustainable.

To institutionalize BRICS cooperation, India has proposed two new working groups. The first will focus on international taxation and transfer pricing, while the second will address issues related to revenue statistics. These groups aim to create a permanent platform to tackle shared challenges faced by tax administrations in BRICS nations, ensuring continuity even after India’s presidency in 2026.

The Finance Minister pointed out that developing countries often bear a disproportionate burden regarding transfer pricing disputes. She emphasized that revenue assessment frameworks sometimes fail to accurately reflect the realities of developing economies.

The design of these working groups allows them to continue their efforts beyond India’s presidency, with China set to take over in 2027. Sitharaman also discussed the digital transformation occurring within tax administration, stating that tax systems worldwide are shifting from traditional paper-based processes to data-driven and digital frameworks.

She highlighted that BRICS countries have shown particular interest in India’s faceless assessment, pre-filled returns, real-time invoice authentication, and AI-driven taxpayer assistance systems.

The meeting also included discussions on the proposal to hold the BRICS Young Tax Professionals Program annually. In April, the National Academy of Direct Taxes in Nagpur hosted the first event, where young tax officials from seven BRICS nations received training on international taxation topics.

Additionally, India has developed initiatives under BRICS cooperation, such as the Tax Collaboration Tool, Tax Knowledge Hub, and Cross-Learning Lab. Work is also ongoing on the VAT Modernization Report and the HR Development Index.

Sitharaman stated that the BRICS Tax Support Network aims to provide practical support to member countries’ tax administrations and enhance the ease of doing business.

Revenue Secretary Arvind Srivastava explained that the proposed working group on international taxation and transfer pricing will create a permanent platform for member countries to share experiences on interpreting tax treaties, conducting transfer pricing audits, and engaging in multilateral discussions.

He added that the revenue statistics working group is developing an evaluation framework that considers the actual conditions of BRICS economies, rather than relying on models designed for countries with entirely different economic contexts.