India Overhauls Tax System to End ‘Tax Terrorism’; Customs Reforms Next, Says Sitharaman

• Dec 06 , 2025

New Delhi | December 6, 2025 Union Finance Minister Nirmala Sitharaman has highlighted the government’s efforts to eliminate what many referred to as “tax terrorism” in India and revealed that the next focus will be on simplifying customs processes. Speaking at the Hindustan Times Leadership Summit 2025, she explained how reforms in the income tax system have made compliance easier, transparent, and less intimidating for taxpayers. Sitharaman emphasized that the problem was not high tax rates but the complexity and unpredictability of the tax administration. Earlier, cumbersome procedures and direct interactions with tax authorities often created stress for honest taxpayers, leading to the perception of “tax terrorism.” To address this, the government introduced a faceless income-tax system, moving assessments and other procedures online. This shift has reduced human interface, streamlined...