Union Finance Minister Nirmala Sitharaman has highlighted India’s technology-driven tax administration at the BRICS Tax Heads Meeting, saying several of the country’s digital practices have generated interest among tax authorities of other BRICS nations.
Speaking at the meeting held under India’s 2026 BRICS Presidency, Sitharaman pointed to systems such as faceless assessment, pre-filled tax returns, real-time invoice authentication and AI-based assistance for taxpayers. She said these experiences could provide useful areas for cooperation and knowledge-sharing among member countries.
The meeting also focused on expanding institutional cooperation between BRICS tax administrations. Sitharaman said two new working groups were being taken up, with one focused on international taxation and transfer pricing and the other on revenue statistics.
Sitharaman flags challenges for developing economies
The Finance Minister said developing countries continue to face particular difficulties in international tax matters, including disputes related to transfer pricing.
“Transfer pricing disputes cost developing country administrations disproportionately,” Sitharaman said, while stressing the need for tax frameworks that take into account the fiscal realities of developing economies.
She said the proposed working groups would provide a continuing platform for BRICS countries to work on common tax-related challenges rather than limiting cooperation to individual meetings.
“These working groups exist because every country in this room has experienced these problems,” she said.
According to Sitharaman, the objective is to create institutions that can continue working on these issues over a longer period, irrespective of which country holds the BRICS chairmanship.
New BRICS tax cooperation tools
Sitharaman also referred to several initiatives being developed through BRICS tax cooperation, including a tax collaboration tool, a tax knowledge hub and a tax cross-learning lab.
She said these initiatives were intended to turn cooperation between tax administrations into practical mechanisms for sharing knowledge and experience.
The government has also been working on a VAT modernisation report and a human resources development index as part of the wider tax cooperation agenda.
Tax Support Network to strengthen cooperation
Another initiative highlighted by Sitharaman was the proposed BRICS Tax Support Network. She said the terms of reference for the network would be signed as part of efforts to support businesses operating across BRICS countries.
“The tax support network, whose terms of reference we will sign today, reaffirms our administration’s commitment to promoting ease of doing business across BRICS countries,” she said.
The development of the network is part of broader efforts under India’s BRICS chairship to strengthen institutional cooperation, capacity building and knowledge-sharing among tax authorities. The BRICS countries have also endorsed new working groups on international taxation and transfer pricing and revenue statistics.
India pushes technology-led tax administration
India’s experience with digital tax administration has become an important part of the country’s BRICS tax cooperation agenda. Sitharaman has previously emphasised technology-led tax administration and taxpayer-focused digital services, including AI-based assistance.
At the meeting, she positioned these systems as areas where BRICS countries can exchange practical experience while developing common approaches to emerging international taxation challenges.
The discussions come as BRICS members seek greater coordination on international tax rules and stronger representation of developing economies in global tax discussions.
