India Urges Global Coordination to Tackle Digitalisation Challenges and Strengthen Tax Information Exchange

By A Staff Reporter

India on Tuesday made a strong pitch for enhanced international cooperation to address emerging tax challenges arising from rapid digitalisation and the proliferation of new financial products, including cryptocurrencies and stablecoins. The call was made during global discussions on taxation policy, where India underlined the growing complexity of monitoring financial flows in an increasingly digital and borderless economy.

Officials emphasised that as technologies evolve, traditional tax frameworks are often unable to keep pace, creating regulatory gaps that can be exploited for evasion, profit shifting and opaque cross-border transactions. India argued that the digital transformation of the global economy demands a unified response and consistent standards across jurisdictions, rather than fragmented national approaches.

A key component of this coordinated effort, India noted, must be the timely and reliable exchange of tax-related information among countries. Such collaboration is essential not only to curb illicit financial activities but also to build a fair, transparent and predictable international tax environment.