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    Sitharaman: Tax Transparency Is India’s Dividend, Not Just Administrative Reform

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    Sitharaman: Tax Transparency Is India’s Dividend, Not Just Administrative Reform

    Finance Minister Nirmala Sitharaman said at Global Forum plenary in New Delhi that India prioritises tax transparency emphasising fairness, compliance, technology-driven exchange and global cooperation for sustainable development and revenue mobilisation.

    India’s finance minister, Nirmala Sitharaman stressed that for India, transparency in tax matters “goes beyond administrative reform” – it reflects a deeper belief that economic governance must rest on fairness and responsibility. She argued that when individuals and firms pay their rightful taxes and illicit financial flows are checked, nations become more stable, equitable, and capable of funding public welfare.

    Far from being a mere compliance tool, transparency is presented as a pillar for sustainable development, she said – enabling better funding of public infrastructure, healthcare, education and social welfare programmes.

    Plenary Opens in New Delhi

    The Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) is holding its 18th plenary meeting in New Delhi (from December 2 to 5, 2025), with Nirmala Sitharaman, Union Finance and Corporate Affairs Minister, inaugurating the event. The gathering brings together 172 jurisdictions committed to implementing global standards for tax transparency – including exchange of information on request (EOIR) and automatic exchange of financial account information (AEOI).

    In her opening remarks, the minister welcomed delegates and emphasized that the shift from a world constrained by secrecy toward one governed by transparency is central to responsible economic governance.

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    Boosting Voluntary Compliance Through Trust

    According to the minister, India’s progress in voluntary compliance over the past decade reflects growing public trust in a tax system that rewards honesty and discourages evasion. She pointed out that simplification, clarity and consistency in tax policies, rather than just enforcement, have encouraged citizens and businesses to voluntarily comply.

    This “tax morale,” as the minister described it, shows that fairness and predictability build stronger compliance than coercion.

    Global Cooperation and Digital Era Challenges

    Addressing delegates at the Global Forum, Sitharaman underscored the urgent need for international cooperation in the face of a rapidly digitising economy. She warned that emerging financial products, evolving beneficial ownership structures, and digital financial flows demand robust mechanisms for timely exchange of information across jurisdictions.

    She also pointed to the centrality of technology – including artificial intelligence – in analysing financial data efficiently. At the same time, she cautioned that technological innovation must be balanced with prudence, respect for due procedure, and data confidentiality.

    India’s Role and Commitment

    India has been an active participant in the Global Forum since 2009. With its leadership roles in peer review groups, steering committees and regional initiatives, India has helped expand capacity-building and promoted transparency standards under its 2023 G20 presidency – especially for developing jurisdictions.

    As host, officials say, India is showcasing its commitment to an inclusive, fair, and transparent approach to taxation – seeking to ensure that the benefits of transparency reach all nations, regardless of size or administrative capacity.

    Future Focus: Digital Economy and Sustainability

    Looking ahead, the minister identified digital-economy taxation, crypto-asset reporting, and evolving financial instruments as priority areas. The plenary sessions during the sessions of the global forum are expected to advance work programmes around EOIR, AEOI, and the emerging crypto-asset reporting framework (CARF), strengthen administrative capacity, and encourage equitable global participation.

    In the long run, the minister said, the push for transparency is aimed at closing the revenue–development gap: ensuring that domestic resources mobilised from taxes contribute directly to societal growth and welfare, fulfilling the deeper principle underlying economic governance.

    The 18th Global Forum plenary in New Delhi – and India’s forceful advocacy of tax transparency – signals a renewed global impetus toward fairer, more accountable finance, officials said. As economies evolve, the challenges are novel, but the commitment to fairness, cooperation and integrity remains timeless.

    Image: PIB

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