Intentar ORO - Gratis
Nudge for tax compliance
Financial Express Lucknow
|August 06, 2025
Behavioural science, an insightful combination of psychology, economics, and linguistics, can improve tax conformity.
Traditionally, the tax codes assume individuals to be rational and guided solely by self-interest. In contrast, behavioural science recognises that human conduct and actions often deviate from rationality due to cognitive biases, social influences, and emotional factors. Accounting for these values and conduct moderators in tax laws, regulations, and interactions among taxpayers and administrators may increase voluntary compliance—the ultimate desired goal of tax administration.
Elevated tax law observance is crucial for any nation to collect sufficient revenues for public services, infrastructure, and social programmes. Easily understandable and clearly communicated options and their individual as well as social costs and benefits may motivate taxpayers to comply with tax laws in letter and spirit. Nobel laureate economist Richard Thaler clearly articulates this core theme of behavioural science: "The framing of a decision can significantly influence its outcome, highlighting the importance of presentation. Nudges can be effective tools to help people make better decisions without restricting their choices." For instance, if taxpayers are repeatedly informed that a certain percentage of their tax payments support public goods like education and healthcare, they may be more inclined to comply with tax laws. European Union countries have often employed this framing strategy to enhance tax compliance through a commitment to civic duties of citizens.
Esta historia es de la edición August 06, 2025 de Financial Express Lucknow.
Suscríbete a Magzter GOLD para acceder a miles de historias premium seleccionadas y a más de 9000 revistas y periódicos.
¿Ya eres suscriptor? Iniciar sesión
MÁS HISTORIAS DE Financial Express Lucknow
Financial Express Lucknow
Focus on education, skilling, employment
DIGITAL LEARNING, INDUSTRY-ALIGNED SKILLING
1 mins
January 12, 2026
Financial Express Lucknow
Modi pitches stability as firms commit to state
PRIME MINISTER NARENDRA Modi on Sunday said India is passing through a phase of unprecedented certainty and political stability at a time when the global economy is facing prolonged uncertainty, positioning the country as a dependable destination for long-term investment.
1 mins
January 12, 2026
Financial Express Lucknow
Govt seeks source code...
LAST MONTH, IT revoked an order mandating a state-run cyber safety app on phones amid concerns over surveillance.
1 min
January 12, 2026
Financial Express Lucknow
Digi Yatra to add 17 airports as adoption rises to 30%
TRAVELLING THROUGH INDIAN airports is set to get faster and less stressful for a large chunk of Indian flyers as Digi Yatra gears up to add its biometric-based travel system across 17 additional airports during the current financial year.
1 mins
January 12, 2026
Financial Express Lucknow
X admits lapse on Grok AI content; removes 3.5K posts, 600 accounts
COMPLIANCE PUSH
1 min
January 12, 2026
Financial Express Lucknow
Integration & accountability to drive next phase
Co-founder and vice-chairman, AIONOS AI MARKS
1 min
January 12, 2026
Financial Express Lucknow
Modi-Merz meet today; key agreements on agenda
INDIA AND GERMANY are set to sign a series of agreements on semiconductors, critical minerals, skill development, and a defence and security roadmap during German Chancellor Friedrich Merz's meeting with Prime Minister Narendra Modi in Ahmedabad on Monday.
1 mins
January 12, 2026
Financial Express Lucknow
In search of differentiation
MATTRESS MAKERS ARE HANGING THEIR HATS ON EMOTION, NOT SPECS
2 mins
January 12, 2026
Financial Express Lucknow
Goods shipments to China buck trend, grow at a fast clip
INDIA'S SHRIMP EXPORTS facing tariffs up to 58% in the US have found a new, fast-growing market in China.
1 mins
January 12, 2026
Financial Express Lucknow
RBI advocates disclosure of NPA; banks approach CIC
FOUR MAJOR BANKS — Bank of Baroda, RBL Bank, Yes Bank and State Bank of India — have approached the CIC objecting to the disclosure of information such as the list of defaulters and NPA, penalties and inspection reports, even as the RBI termed the records “liable to be disclosed” under the RTI Act.
1 min
January 12, 2026
Listen
Translate
Change font size
