Industry Odisha Bureau, Sept 16: FM Sitharaman says India’s economy stands strong, calls for sharper public policy debate. India remains better placed economically despite mounting global challenges, Finance Minister Nirmala Sitharaman said on Wednesday. She pushed for a more mature, evidence driven public policy debate on taxation. Compliance Over Confrontation Speaking at ITRAF’s 8th International Tax Conference in Bengaluru, Sitharaman said tax reforms aim to ease compliance. She stressed reducing litigation rather than merely managing pending disputes. Sitharaman said the government’s philosophy favours voluntary compliance, reserving enforcement for genuine violations. She added that reforms have focused on resolving disputes at their source.
Reform Track Record
She cited the Vivad se Vishwas schemes for settling long pending tax disputes between parties. Appeal thresholds were also raised in 2024 to cut litigation volumes. Sitharaman pointed to the 2019 corporate tax cut to 22 per cent as a landmark reform. Individual income tax rationalisation in 2025 exempted earners up to Rs 12 lakh.
She also flagged the new, simplified Income Tax Act replacing the six decade old legislation. GST consolidation into two primary rates further reduced classification related disputes, she said.
A Call For Sharper Public Policy Inputs
Sitharaman urged industry and tax professionals to move beyond demands for concessions and exemptions. She wants quantified, evidence based proposals that weigh wider economic and revenue impacts.
She asked stakeholders to flag redundant provisions even when those provisions benefit them directly. Proposals should detail affected taxpayers, compliance costs, and consequences for the broader tax base.
On global taxation, she cited renegotiated treaties with Mauritius, Singapore and Cyprus. These restored India’s right to tax capital gains at source. Sitharaman also referenced GAAR, the Multilateral Instrument, and expanded Advance Pricing Agreements as key tools. She urged ITRAF to build independent research shaping India’s public policy landscape.
