Union Finance Minister Nirmala Sitharaman today said that for India transparency in tax matters has always gone beyond administrative reforms. Addressing the 18th Global Forum Plenary Meeting in New Delhi, the Finance Minister highlighted that the country touches upon the deeper principle of economic governance which must rest on fairness and responsibility. Emphasizing on the direct bearing of transparency on development, Ms Sitharaman said that when national wealth escapes legitimate taxation it not only creates a revenue gap but also a developmental gap.
She also noted that it is important to view transparency not as compliance tool but also as a foundation for sustainable development and fiscal resilience. The Minister said that voluntary tax compliance in the country has strengthened significantly over the past decade. she asserted that citizens are now more willing to participate in the tax system when they are assured that honesty is rewarded and tax evasion is dealt with firmly. Ms Sitharaman stated that this improvement in tax morale is not due to enforcement alone, but also due to greater clarity, simplification of procedures and consistent efforts to build trust with taxpayers. She added that fairness and predictability in the system encourage public participation far more effectively than compulsion.
