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Informist, Tuesday, Dec. 2, 2025

 

NEW DELHI – Countries need to cooperate in the matters of tax as new financial products emerge and the economy becomes more digital, Finance Minister Nirmala Sitharaman said Tuesday. The evolving structures of "beneficial ownership" also call for continued cooperation between jurisdictions, she said.

 

"Confidentiality and cybersecurity must also be maintained with great care," Sitharaman said at the 18th Global Forum Plenary Meeting in New Delhi. "These are not challenges that any one country can address alone. They demand coordination, trust, and timely exchange of relevant information," she added.

 

In a global economy, stable and trusted relationships between jurisdictions are indispensable, the finance minister said. "Where trust exists, cooperation becomes easier, investments grow, and economic relationships become more stable."  

 

Sitharaman said the role of the global forum is critical in reviewing implementation, developing standards, and supporting countries. Countries together need to deepen current standards and ensure the information exchanged translates into measurable outcomes, the finance minister said.

 

"For India, transparency in tax matters has always gone beyond administrative reform," she said. "Our laws against illicit financial flows and undisclosed foreign assets reflect this belief as does our participation in both the exchange of information on request and the automatic exchange of information standards."

 

The finance minister said that transparency has a direct bearing on development. When national wealth escapes legitimate taxation, it creates not only a revenue gap but also a development gap as public infrastructure, education, health services, and welfare programs all depend on domestic resources, she said. 

 

"For developing countries, this effect is particularly significant. Every rupee or dollar mobilised through transparency can help improve lives. It is, therefore, important to view transparency not only as a compliance tool, but also as a foundation for sustainable development and fiscal resilience," she said. Sitharaman added that over the past decade, India has seen visible strengthening of voluntary compliance.  End

 

Reported by Shubham Rana

Edited by

 

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