Union Finance Minister Nirmala Sitharaman said the government’s tax-reform approach is aimed at reducing the creation of tax disputes, rather than simply addressing accumulated litigation. Speaking at the 8th International Tax Conference of the International Tax Research and Analysis Foundation (ITRAF) in Bengaluru on September 16, 2026, she called for practical, evidence-based reform proposals from industry bodies and tax-policy researchers.
Sitharaman said tax administration should make voluntary compliance easier while reserving enforcement measures for cases requiring intervention. She referred to the Vivad se Vishwas dispute-resolution schemes as measures that enabled taxpayers and the government to resolve legacy disputes without prolonged litigation.
She also highlighted the increase in monetary thresholds for departmental appeals in 2024, under which the limits were raised to ₹60 lakh for appeals before appellate tribunals, ₹2 crore before High Courts and ₹5 crore before the Supreme Court.
The Finance Minister outlined several tax-policy changes undertaken in recent years, including the reduction of the corporate tax rate to 22% in 2019, changes to individual income-tax rates in 2025, and the introduction of a new income-tax legislation intended to use simpler and more concise language while maintaining the broader tax burden.
She also identified the restructuring of GST rates in 2025 as a significant reform, stating that greater rate consolidation could help reduce classification-related disputes.
Sitharaman further called for greater substance in pre-Budget representations. She said proposals should include measurable assessments of the number of taxpayers affected, compliance costs, revenue implications, effects on the tax base and possible consequences for other taxpayers.
On international taxation, she referred to developments involving tax treaties with Mauritius, Singapore and Cyprus, along with measures including GAAR, the Multilateral Instrument, the Advance Pricing Agreement programme and expanded safe-harbour provisions.
The Finance Minister also encouraged ITRAF to strengthen its role in independent tax-policy research and contribute more visibly to discussions on reforms supporting India’s long-term economic development objectives. CASansaar