There is no point if blocks of the economy like BRICS remains inactive. BRICS is a union of economies formed by 4 nations – Brazil, Russia, India, China, and South Africa. BRICS must get activated from time to time. These individual nations have to deal with problems such as corruption, terrorist financing, money laundering, etc.
It was formed with the objective of sharing information by the tax heads of the BRICS nations. Digitalization has posed so many tax challenges. According to information updated on May 29th, 2020, India very strongly pitched for wider information sharing among the BRICS nations. India strongly argued information exchanges under tax treaties. No other member nation voiced concern for information sharing to stop corrupt practices. The meeting of tax heads was held on Friday, May 29th, 2020.
India’s stand for adopting a well-defined approach in dealing with financial crimes across the border is very sensible. Our country itself has been a victim of such financial crimes. India’s eminent financial secretary Ajay Bushan Pandey represented India via video conferencing.
One serious information India asked for sharing is that of Covid-19 related tax measures taken by respective BRICS members. From this, we can understand the broader vision of Indian representation. India could enhance the countries’ understanding of the fiscal and economic impact of the pandemic. This wisdom of the Indian team must be praised for more than anything else. The knowledge sharing would also help the nation to further evaluate possibilities to help the government contain the Covid-19 pandemic, as said by Pandey.
Economic organizations like BRICS formed by more than one nation will help synergize the total economic power of nations. Moreover, by the time BRICS is convened, the meeting becomes a platform for the member countries to share information from each other and develop that is the reason why India battled for sharing of tax-related knowledge. China, Russia, Brazil, and South Africa are countries that can benefit a great deal through timely updating of tax norms.
Member countries can learn a lot from the tax regime of another country and improve their tax regimes. This is particularly clear when the bloc- BRICS deliberated on the various pros and cons of taxation at the time of the current shutdown in the face of COVID-19 pandemic.
