Capital gains tax reforms in context

The budgetary provisions on the taxation of capital gains could help foster change in trading behaviour and address inequality

International mobility of capital, both by individuals and through corporations, has posed challenges to the ability of nations to tax capital income on a par with the taxation of relatively less mobile labour income. The G20’s Base Erosion and Profit Shifting or BEPS project brought to the centre stage the issues related to corporations with a global presence, with solutions being proposed through administrative and taxation measures in the form of Pillar 1 and Pillar 2. This approach focuses on establishing a coordinated tax regime across countries, thereby reducing the scope for complete evasion/avoidance of taxes. Alongside