Districts top10 taxpayers can get diplomattype sops

first_imgNew Delhi: To improve tax compliance, the Economic Survey 2018-19 Thursday suggested that the government could consider giving top-10 taxpayers in each district recognition by way of “diplomatic”-type privileges at immigration counter, express boarding at airports, and even naming of roads, buildings and schools. It said that since people often indulge in conspicuous consumption to convey their social status, top-10 taxpayers within a district can be highlighted and accorded due recognition. Also Read – Maruti cuts production for 8th straight month in SepThis may take the form of expedited boarding privileges at airports, fast-lane privileges on roads and toll booths, special “diplomatic”-type lanes at immigration counters, etc. Further, the highest taxpayers over a decade could be recognised by naming important buildings, monuments, roads, trains, initiatives, schools and universities, hospitals and airports in their name, the Survey suggested. “The idea is to create exclusive membership of ‘clubs’ that exude not only social status but also honour. Such steps can also help propagate the social norm that ‘paying taxes honestly is honourable’,” the Survey said. Also Read – Ensure strict implementation on ban of import of e-cigarettes: revenue to CustomsThe Survey, tabled in Parliament by Finance Minister Nirmala Sitharaman, also suggested propagating the social norm that ‘paying taxes honestly is honourable’ by way of displaying signboards showing ‘tax money at work’ in construction projects could lower perceptions of ‘vertical unfairness’. “Similarly, highlighting the tax paid by other taxpayers, especially self-employed individuals, in the panchayat/ district through SMS, billboards etc, can correct perceptions of horizontal unfairness,” the Survey added. It said across countries, researches have highlighted that tax evasion is driven significantly by tax morale — the intrinsic motivation of taxpayers in a country to pay taxes. Tax morale itself is driven primarily by two perceptive factors: (i) vertical fairness, i.e. what I pay in taxes is commensurate to the benefits I receive as services from the government; and (ii) horizontal fairness, i.e., differences in the taxes paid by various sections of society.last_img

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