FM flags significance of Brics tax push

New Delhi The effort by BRICS countries effort to find common ground on international taxation is significant at a time when tax-related rules are being renegotiated around the world, finance minister Nirmala Sitharaman said.

The bloc has indicated that it intends to pursue the interests of the global South at multilateral forums, including the UN Framework Convention on International Tax Cooperation.

Speaking at the BRICS tax heads meeting in New Delhi on Wednesday, the finance minister said the grouping’s decisions will play a significant role in multilateral tax negotiations.

“BRICS economies as source jurisdictions, as large developing economies, as countries that have built significant domestic tax capacity from a low base, have a perspective on those negotiations and that is essential to their fairness and their durability,” she said.

BRICS has 11 members -- Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the UAE -- and 10 partners -- Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan and Vietnam.

During the recently held BRICS Summit under India’s chairship in New Delhi, the countries reaffirmed their “commitment to a fair, inclusive, stable, and efficient international tax system” and resolved to strengthen cooperation among BRICS members in addressing evolving international tax challenges. They committed for constructive engagement in international forums like the UN Framework Convention on International Tax Cooperation (UNFCITC).

UNFCITC is a proposed treaty to establish a fairer, equitable, inclusive and transparent global taxation system. In 2023, the UN General Assembly adopted a resolution to begin negotiations on a new tax convention. Negotiations started in 2025 and its text is expected to be finalised by 2027.

Under India’s chairship, BRICS established two working groups – one on the International Taxation and Transfer Pricing, and the other on Revenue Statistics. It also marked the in-person capacity building programme for young tax professionals and the advancement of the BRICS women in tax network. It also promoted the BRICS Tax Support Network, the BRICS Tax Cross-Learning Lab, and the BRICS Tax Collaboration Tool.

In this context, Sitharaman highlighted three focus areas of the BRICS tax track this year: “Technology: The use of data and digital infrastructure to make tax administration more precise, more accessible and less dependent on the discretionary power of individuals. Administration: The governance structures, the shared standards, the practical tools that give a cooperation like ours a durable institutional shape. People: The investment in the men, women and the young of our institutions and in the relationships between the individuals who carry them forward.”

The finance minister said India has shared its experiences such as faceless assessment, pre-filled returns, real-time invoice authentication, and AI-enabled taxpayer assistance with BRICS partners through the BRICS tax collaboration tool. She informed that the Tuesday meeting will look at the scoping documents for two new working groups – one on the international taxation and transfer pricing, and the other on revenue statistics.

“What we decide upon today is not the purpose of India’s chairship. It is meant to build on what has been achieved so far and what can be the foundation that the next chair inherits,” she said. “I’m proud of what this cooperation has built. I’m grateful to each of your governments for the seriousness,” she added.