Sitharaman calls for global cooperation on the tax challenges of the digital economy and new financial products

Union Finance Minister Nirmala Sitharaman | Photo credit: @AndhraPradeshCMOX/ANI Photo

“There are new challenges that require joint attention. The digitalization of the economy, the emergence of new financial products and the evolving beneficial ownership structures require continued cooperation between jurisdictions,” Sitharaman said at the 18th Global Forum Plenary on Transparency and Exchange of Information for Tax Purposes and Associated Meetings here. This forum is a multilateral framework covering 170 jurisdictions. It monitors and peer reviews the implementation of international standards on transparency and information exchange.

Trust and transparency

Stating that confidentiality and cyber security must be maintained with great care, the minister said these are not challenges that one country can tackle alone. “They demand coordination, trust and timely exchange of relevant information,” she said. According to her, cooperation becomes easier when there is trust, investments grow and economic relations become more stable. “In a global economy where interdependence is a fact of life, stable and trusted relationships between jurisdictions are indispensable,” she said.

The role of the Global Forum in assessing implementation, developing standards and supporting countries remains critical, she said, adding that transparency can be both effective and fair when guided by clear rules, mutual respect and shared objectives.

“As the work progresses, our collective role is to deepen current standards where necessary and ensure that the information exchanged translates into measurable results. The focus must remain on fairness, sustainability and public confidence in the integrity of tax systems,” said Sitharaman.

“We may come from different jurisdictions and traditions. But we are united by the shared goal of ensuring that lawful economic activity is encouraged, that evasion is discouraged’¦,” the minister added.

Noting that voluntary compliance in India has increased over the past decade due to the fairness and predictability of its tax systems, the minister said India has integrated the information exchanged with broader analyzes of compliance and risk.

She said technology and artificial intelligence provide opportunities to understand information in a timely and efficient manner, but the key is judgment, responsibility and respect for the procedure. “Innovation must always go hand in hand with responsibility. It is that balance that gives systems strength and credibility,” Sitharaman said.

Published on December 2, 2025