Global tax rules should offer meaningful revenue to developing countries: Nirmala Sitharaman

At the G20 meeting of Finance ministers and central bank governors on the sidelines of the IMF World Bank annual meeting in Washington DC, Sitharaman spoke about infrastructure investments and International taxation, finance ministry said in a social media update.

The minister’s comments about international taxation is in the context of the new set of global rules that are being framed to ensure that technology giants pay their fair share of taxes in market jurisdictions—that is, countries where they have customers.

“On the two-pillar solution, (the) finance minister called for participative engagement of all jurisdictions in negotiations and prioritising capacity building. She also said that international tax rules should be simple, administrable and generate meaningful revenue in developing countries,” the ministry said in a Tweet.

On scaling up sustainable and digital infrastructure investments, the minister highlighted the need to leverage private sector participation. Sitharaman also spoke on mobilising finance at sub-national level for inclusive and quality infrastructure, said the ministry.

The meeting also saw discussions on the progress made on the agenda of international taxation during this year.

Sitharaman also called for an effective tax reporting regime and information exchange between jurisdictions for crypto assets to combat offshore tax evasion, the ministry said.