New Delhi, Sep 23 (IANS): 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.
The meeting also considered the institutionalisation of the BRICS Young Tax Professionals Programme as an annual event at the National Academy of Direct Taxes, Nagpur. The first in-person programme, held in April, brought together young tax officials from seven BRICS countries for a week-long programme on international taxation.
India’s efforts have developed the Tax Collaboration Tool, Tax Knowledge Hub and Cross-Learning Lab. A VAT Modernisation Report and HR Development Index are under development.
The BRICS Tax Support Network, terms of reference for which are being finalised, intends to provide a practical platform for supporting tax administrations and promoting ease of doing business across BRICS countries. Sitharaman said the initiatives reflected a broader effort to build cooperation around technology, administration and people.
Revenue Secretary Arvind Shrivastava said the international taxation and transfer pricing working group will provide a permanent platform for member administrations to exchange their experience in treaty interpretation, transfer pricing audits, advance pricing agreements and mutual agreement procedures, as well as multilateral negotiations.
The revenue statistics working group is developing a framework for measuring tax-system performance that reflects the realities of BRICS economies, rather than relying on frameworks developed for different economic systems, he added.
