Finance Minister Nirmala Sitharaman on Wednesday said BRICS tax administrations need to increase their collective participation in the ongoing restructuring of global taxation rules.
She said decisions taken during the current negotiations would influence cross-border taxation systems for years.
“The rules of international taxation are being renegotiated,” Sitharaman said at a meeting of BRICS tax heads in New Delhi, highlighting discussions around the proposed UN Framework Convention on International Tax Cooperation.
She said BRICS economies, as large developing nations with strong domestic tax systems, have valuable perspectives to contribute to the global debate.
India proposes new BRICS tax working groups
India has suggested the creation of two working groups focused on international taxation and transfer pricing, as well as revenue statistics. The aim is to establish long-term institutional mechanisms that continue after India’s BRICS chairmanship in 2026.
Revenue Secretary Arvind Shrivastava said the international taxation and transfer pricing group would provide a platform for member countries to exchange expertise on treaty interpretation, transfer pricing audits, advance pricing agreements and multilateral tax negotiations.
The revenue statistics group will work on developing methods to assess tax system performance while considering the economic realities of BRICS nations.
Sitharaman said the proposed groups would help address challenges faced by developing economies in international taxation.
“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 said.
BRICS expands tax cooperation initiatives
The minister said the new mechanisms are designed to continue beyond India’s term, with China set to assume the BRICS chairmanship in 2027.
The meeting also discussed making the BRICS Young Tax Professionals Programme an annual initiative at the National Academy of Direct Taxes in Nagpur.
India has also introduced platforms such as the Tax Collaboration Tool, Tax Knowledge Hub and Cross-Learning Lab to improve cooperation among tax administrations. Other initiatives, including the VAT Modernisation Report and HR Development Index, are under development.
The BRICS Tax Support Network is also being established to help tax authorities share expertise and improve ease of doing business across member countries.
