G20 regulation of cryptocurrency, optimising GST paramount: FM Nirmala Sitharaman

CHENNAI: Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman on Thursday said that it is necessary to discuss cryptocurrency regulations and emphasised that the G20 countries should discuss this.

Delivering a keynote address at the Revenue Bar Association’s event titled “The Finance Minister’s Insight: Path Forward” in the city, Nirmala Sitharaman said, “It is important to discuss cryptocurrency regulations.

Drug smugglers are using it for trafficking. It is necessary to monitor this and stop drug smugglers from using cryptocurrency. It is a must for G20 countries to discuss.”

The Finance Minister also underscored the need to bring reforms in the Goods and Services Tax (GST).

“The GST rate is currently much below the revenue neutral rate (RNR), which was originally suggested to be 15.3 per cent. The current average GST rate has decreased to 12.2 per cent as of 2023. We need to raise revenue, but simplifying, easing and ensuring compliance for taxpayers comes first,” she noted.

Underscoring the Centre’s commitment to simplifying tax compliance while maintaining a balance between the fiscal needs and the ease of tax administration for citizens, Nirmala said that the federal structure in GST has to be respected so that both the Union and States can work together to widen the tax base and promote developmental activities.

“If we start talking about the development of our country, we should think about the possibility of “One Nation One Tax”. But I can’t say whether it is possible or not,” she adds.

The FM also urged the Revenue Bar Association members to register correct information about the economy and investments on social media platforms.

“Many economists are sharing their insights on social media. But if 10 people give the right information, 100 people share the wrong information on social media. People like you must register the right information about the economy and investments,” she said.

Later the Finance Minister thanked Prime Minister Narendra Modi for the announcement of the establishment of Thiruvalluvar Cultural Centre in Singapore.

Convener of State BJP committee H Raja and other leaders were present at the event.