What new challenges does Nirmala Sitharaman see in the digital economy?

She highlighted challenges from economic digitalization, new financial products, and evolving beneficial ownership structures.

Why is international cooperation important for tax purposes?

Cooperation is vital for maintaining transparency, exchanging information, and addressing challenges that no single country can solve alone.

How does technology impact tax systems according to Sitharaman?

Technology and AI offer efficient ways to analyze information, but innovation must be balanced with accountability and respect for procedure.

Home / Business and Economy / Global Finance Faces Digital, Tax Hurdles

Global Finance Faces Digital, Tax Hurdles

2 Dec, 2025

•

Summary

Digital economy, new products pose fresh challenges.
International cooperation is vital for tax transparency.
Technology aids tax analysis but requires accountability.

Global Finance Faces Digital, Tax Hurdles

Finance Minister Nirmala Sitharaman has called for enhanced international cooperation to address emerging challenges in the global economy, including digitalization, novel financial products, and complex ownership structures. Speaking at the 18th Global Forum Plenary, she stressed that these issues require a unified approach among 170 participating jurisdictions.

Sitharaman underscored the importance of trust and transparency in financial dealings, stating that cybersecurity and confidentiality are paramount. She noted that while technology and AI offer significant opportunities for efficient data analysis, human judgment and accountability remain essential for maintaining the credibility of tax systems.

The minister affirmed India's commitment to strengthening voluntary compliance through fair and predictable tax systems. She concluded by emphasizing the shared purpose of encouraging lawful economic activity and discouraging evasion, highlighting the delicate balance between innovation and accountability.