Sitharaman Tells BRICS Tax Chiefs the Bloc Must Shape Emerging Global Tax Rules

Finance Minister Nirmala Sitharaman addressed the BRICS Tax Heads Meeting in New Delhi on Wednesday, arguing that the bloc's developing economies must actively shape the rules emerging from ongoing multilateral negotiations on international taxation rather than simply adopting frameworks designed elsewhere.

Negotiations That Will Outlast Any Single Government

Sitharaman told delegates that the rules governing how countries tax cross-border income and corporate profits are currently being renegotiated through several parallel global processes, most notably the United Nations Framework Convention on International Tax Cooperation. That instrument, championed largely by developing nations, aims to shift some authority over global tax norms away from bodies historically dominated by wealthy economies and toward a more universal, UN-anchored process.

Her central argument was about durability. "The decisions made in these processes over the next few years will shape cross-border taxation for a generation," she said, framing the current negotiating window as a rare opportunity that BRICS members cannot afford to sit out.

Why BRICS Economies Want a Seat at the Table

Sitharaman positioned BRICS nations, as major source jurisdictions and large developing economies that have built domestic tax capacity from a relatively low base, as bringing a distinct and necessary perspective to the talks. She argued that without their input, any resulting framework would lack both fairness and staying power. The meeting also saw discussion of new BRICS working groups focused on international taxation, transfer pricing, and revenue statistics, intended to help member countries tackle shared administrative and enforcement challenges.

Building Institutions Beyond India's Chairship

Notably, Sitharaman framed the cooperation as bigger than India's current one-year BRICS chairship. She said the goal was to create "the sustained institutional space in which progress on them becomes possible. Not in one year, but over time, regardless of who holds the chair," signalling that New Delhi wants the tax working groups and coordination mechanisms set up this year to continue functioning under future chairs, whether Brazil, Russia, China or South Africa.

The Bigger Picture for India

The meeting comes as India continues to position itself as a bridge between advanced and developing economies on global economic governance, a role it has leaned into through its BRICS chairship this year alongside its earlier G20 presidency. For Indian policymakers, influence over the emerging UN tax framework carries direct stakes: rules on where multinational profits get taxed, how digital services are treated, and how transfer pricing disputes are resolved all affect India's ability to tax global companies operating within its borders.

While Wednesday's meeting produced no binding outcomes, it adds to a running thread of BRICS statements this year committing the bloc to coordinated engagement in the UN tax process, suggesting India intends to use its chairship to push the group toward a more unified negotiating position before the framework convention's substantive talks advance further.

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