“Coordination, Trust Essential”: Sitharaman Urges Nation To Unite On Tax Transparency, Cybersecurity

Finance Minister Nirmala Sitharaman on Tuesday stressed the need for stronger global cooperation on tax matters as new financial products emerge and economies become increasingly digital. Speaking at the 18th Global Forum Plenary Meeting in New Delhi, she said that evolving structures of beneficial ownership require deeper coordination between jurisdictions. Sitharaman emphasised that confidentiality and cybersecurity must be protected, noting that such challenges cannot be solved by any country alone. “They demand coordination, trust and timely exchange of relevant information,” she said. Highlighting the importance of trust in global economic relationships, the finance minister said stable partnerships make cooperation easier and foster investment. She underlined the Global Forum’s crucial role in developing standards, reviewing implementation, and helping nations strengthen tax systems. For India, Sitharaman said tax transparency is integral to development, not just administrative reform. She pointed to India’s strong laws against illicit financial flows and undisclosed foreign assets, and its participation in global information exchange frameworks. Sitharaman noted that when wealth escapes legitimate taxation, it widens both revenue and development gaps, affecting public services such as health, education, and welfare. For developing countries, she said, transparency directly impacts lives and fiscal resilience. India, she added, has seen a significant rise in voluntary compliance over the past decade.