(MENAFN- KNN India) New Delhi, Dec 2 (KNN) Union Finance Minister Nirmala Sitharaman on Tuesday called for joint action by countries to deal with the taxation challenges arising from digitalisation of the economy, the emergence of new financial products, and evolving structures of beneficial ownership.

Speaking at the 18th Global Forum Plenary Meeting in New Delhi, the Minister said, "The digitalisation of the economy, the emergence of new financial products, and evolving structures of beneficial ownership require continued cooperation between jurisdictions.

Hosted by international body OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, the Plenary Meeting focuses on tax transparency through international cooperation.

Sitharaman noted that confidentiality and cybersecurity must also be maintained with great care.

"These are not challenges that any one country can address alone. They demand coordination, trust and timely exchange of relevant information," she stated.

Sharing India's experience about taxation policy, the Minister said that the country has sought to integrate exchanged information with broader analyses of compliance and risk.

"Increasingly, the potential of technology and artificial intelligence offers us the opportunity to make sense of information in more timely and efficient ways," she said at the Plenary meeting attended by tax authorities and delegates from various countries.

The Minister stated that innovation must always walk hand in hand with accountability and it is that balance which gives systems strength and credibility.

Sitharaman emphasized that for India transparency in tax matters has always gone beyond administrative reform.

She said that when national wealth escapes legitimate taxation, it creates not only a revenue gap but also a development gap.

"When individuals and enterprises pay their fair share, and when evasion is effectively deterred, societies become stronger and more equitable. That conviction has shaped our legislative and enforcement frameworks," the Minister said.

She noted that India has over the past decade seen a visible strengthening of voluntary compliance where citizens are more willing to participate when they are certain that the system rewards honesty and acts firmly against evasion.

(KNN Bureau)

MENAFN02122025000155011030ID1110423630