FM calls on global community to design new taxation system
NEWDELHI/RIYADH: Finance minister Nirmala Sitharaman on Sunday said the international community has a unique opportunity to design a new international tax system to handle the challenges of digitalisation with a cost-efficient dispute prevention mechanism.
She called upon the G20 countries to ensure that the consensus solution being developed by G20/ inclusive framework for addressing tax challenges arising from digitalisation is truly inclusive, according to tweets by the finance ministry.
The finance minister emphasised on the need for a closer collaboration between revenue agencies to investigate tax affairs of offenders who cross-borders for escaping tax investigation, a tweet said.
During the second day of the G20 finance ministers and central bank governors meeting in Riyadh, Sitharaman highlighted the efforts undertaken by the Government of India to deepen the corporate bond market, such as removal of capital controls for identified categories of government securities (G-Secs) and increased foreign portfolio investment (FPI) limit on the corporate bond market.
The finance minister said she looked forward to continued engagement with G20 on this agenda. According to the tweets, Sitharaman explained the steps being taken to reform the credit default swap market, changing the method of buying and selling bonds electronically through exchanges, and facilitating on-tap issuances for all, among others, for further enabling greater investments in India’s bond market.
Speaking during the session on infrastructure investment, Sitharaman welcomed the efforts underway in G20 to develop infrastructure technology—the InfraTech Agenda.
However, she also cautioned that G20 should refrain from developing any common prescriptive approach since various countries are at varied stages of adoption of technology in infrastructure, according to the tweets.
The minister highlighted successful Indian experience in the area of adoption of technology in infrastructure such as FASTags. She also pointed out the efforts being taken for installation of smart energy meters across India to reduce revenue leakages.
RECOVERY ‘AT RISK’
Meanwhile, as G20 financial chiefs discussed ways to contain its economic ripple effects, the International Monetary Fund (IMF) warned that coronavirus could put an already fragile global economy recovery at risk.
Global growth was poised for a modest rebound to 3.3% this year, up from 2.9% last year, IMF chief Kristalina Georgieva said after the meet in Riyadh. “The projected recovery... is fragile,” Georgieva said.
“The COVID-19 virus has disrupted economic activity in China and could put the recovery at risk,” she said in a statement.