No more tax wishlists? FM Sitharaman asks experts to make the case for what should go
Sep 16, 2026
Synopsis
Finance Minister Nirmala Sitharaman urged tax professionals and industry bodies to move beyond demands for exemptions and rate cuts, asking them to identify provisions that no longer serve the tax system, even when they benefit from them. She said India remains better placed economically despite global challenges and sought evidence-based tax reforms.
Nirmala Sitharaman urged tax experts to look beyond concessions and identify provisions that should be removed from the tax system, even when their sectors benefit from them.
Finance Minister Nirmala Sitharaman on Wednesday challenged tax professionals and industry bodies to move beyond demands for exemptions and lower rates, asking them to identify provisions that no longer serve the tax system even when their own sectors benefit from them.
Speaking at the International Tax Research and Analysis Foundation’s (ITRAF) 8th International Tax Conference in Bengaluru, Sitharaman said India was better placed economically despite challenges around the world and called for a more mature, evidence-based tax policy debate focused on the national interest.
“So, I wish to hear a submission that says, ‘here is a provision that no longer serves the tax system and ought to be removed even though we presently benefit from it’,” she said.
She urged tax professionals, industry representatives and policy researchers to submit quantified alternatives that explain the impact of proposed changes on revenue, administration, compliance costs and other taxpayers, rather than making representations based solely on sectoral interests.
The Finance Minister said such research and debate would be important to India’s journey towards Viksit Bharat 2047.
Easier compliance, fewer tax disputes
Sitharaman said the Centre’s tax reforms had focused on reducing litigation at its source rather than simply managing pending disputes.
“The philosophy is simple: make voluntary compliance easier and reserve enforcement capacity for cases that genuinely require it. We have aimed at reducing tax litigation rather than merely managing it,” she said.
She cited the Vivad se Vishwas schemes, which gave taxpayers and the government an opportunity to settle longstanding disputes, and the increase in 2024 of the monetary thresholds for departmental appeals. The limits were raised to Rs 60 lakh before the appellate tribunal, Rs 2 crore before high courts and Rs 5 crore before the Supreme Court.
Sitharaman also pointed to the reduction of the corporate tax rate to 22% in 2019 and the rationalisation of individual income tax rates in 2025, under which an individual with an income of Rs 12 lakh pays no income tax.
The replacement of the Income Tax Act, 1961, with a shorter, plain-language code drafted in six months was another reform she cited. The new code was prepared without changing the overall tax burden.
She said the consolidation of GST into essentially two primary rates in 2025 was also intended to reduce litigation by limiting disputes over the classification of goods and services.
The government had additionally rationalised tax deducted at source and tax collected at source provisions, while reducing unnecessary criminal consequences under tax laws, she said.
FM seeks independent tax policy research
Sitharaman said pre-budget submissions from institutions routinely narrowed down to requests for lower rates, exemptions or concessions. She called for representations that examined the wider consequences of proposed reforms, including their impact on the tax base, administration and other taxpayers.
“If a provision is said to impose an excessive compliance burden, tell us how many taxpayers it affects, how much time or cost it imposes, and what an alternative would mean for revenue,” she said.
“If a change is proposed, show us not only who gains from it but also its consequences for the tax base itself, administration and other taxpayers,” she added.
The Finance Minister also urged professionals to identify potential unintended consequences of proposed changes and place the broader national interest ahead of sectoral considerations.
On international taxation, Sitharaman recalled India’s renegotiation of tax treaties with Mauritius, Singapore and Cyprus to restore its right to tax capital gains at source. She also cited the implementation of General Anti-Avoidance Rules, the Multilateral Instrument and the expansion of the Advance Pricing Agreement programme, alongside new safe harbour provisions.
Sitharaman called on ITRAF to move from quiet commentary to visible, independent research that could contribute to public policy discussions. She referred to institutions such as the UK's Institute for Fiscal Studies and the Netherlands-based IBFD as examples of research bodies that examine policy choices in depth.
Independent tax research, she said, should become part of public discourse and help inform the choices shaping India’s economic future.
(With inputs from agencies)
[The Economic Times]
