कोशिश गोल्ड - मुक्त
Social proof in action: Behavioural path to better tax system
Daily FT
|July 22, 2025
HUMAN nature is fundamentally shaped by connections emotional, social, and environmental that begin at birth and persist throughout life. These connections influence how people think, grow, and make decisions, creating a deep reliance on signals from those around them. Among the most powerful of these influences is social proof the habit of observing others when deciding how to behave, especially in uncertain situations. In the context of taxation, social proof plays a crucial role in shaping individual attitudes and compliance behaviours. Understanding and using this human pattern can be a game-changer for governments seeking to strengthen voluntary tax compliance and build a culture of civic responsibility.
Why do we so often follow the crowd, even when we're not sure what's going on? Imagine walking through town and spotting two restaurants one nearly empty, the other buzzing with people. Most of us would pick the busy one, thinking, "They must know something I don't." That's social proof in action. It's a simple, everyday habit copying others when we're unsure that also shows up in bigger decisions, like paying taxes. When we see people around us doing their part, it sends a quiet but powerful message: “This is what responsible citizens do.”
Recognising this tendency, many tax authorities in the globe have shifted their approach moving beyond audits and penalties to foster positive social norms that encourage people to meet their tax obligations. When people see that most of their neighbours, friends, or colleagues are paying taxes honestly and on time, they feel a stronger sense of responsibility to do the same. Social proof creates a community expectation that paying taxes is the normal and right thing to do. This approach helps build trust and cooperation between taxpayers and tax administrations. By highlighting compliance as a common behaviour, tax authorities can encourage voluntary compliance more effectively than through enforcement alone. Ultimately, this strategy supports a fairer and more sustainable tax system for everyone.
यह कहानी Daily FT के July 22, 2025 संस्करण से ली गई है।
हजारों चुनिंदा प्रीमियम कहानियों और 10,000 से अधिक पत्रिकाओं और समाचार पत्रों तक पहुंचने के लिए मैगज़्टर गोल्ड की सदस्यता लें।
क्या आप पहले से ही ग्राहक हैं? साइन इन करें
Daily FT से और कहानियाँ
Daily FT
Cinnamon Hotels & Resorts strengthens gender inclusion
CINNAMON
2 mins
January 08, 2026
Daily FT
“If You Hug Me, | Will Fall” reframes sustainability through human strength
Memoir explores dignity-led recovery, sustainable support systems and the power of standing on one's own terms
2 mins
January 08, 2026
Daily FT
Women's NSL T20 gets underway today
Senior players including Chamari Athapaththu rested
1 min
January 08, 2026
Daily FT
Sri Lanka begin final run to T20 World Cup on sorry note
Lose to Pakistan by six wickets
2 mins
January 08, 2026
Daily FT
Bethell century gives England Ashes silver lining
JACOB
2 mins
January 08, 2026
Daily FT
Flexiprint Honored at Presidential Export Awards 2024/25 for the 4th Consecutive Year
Flexiprint (Pvt) Ltd, a trailblazer in Sri Lanka's printing and packaging industry, proudly celebrated yet another landmark achievement by securing the Best Exporter Award (sectoral) at the Presidential Export Awards 2024/25.
3 mins
January 08, 2026
Daily FT
Jetwing Saman Villas wins "Best International Hotel for Weddings" at Travel+Leisure India's Best Awards 2025
JETWING Saman Villas, part of Jetwing Luxury Reserves, has been awarded “Best International Hotel for Weddings” at the 14th edition of Travel+Leisure India and South Asia's Best Awards, held last month in New Delhi.
1 mins
January 08, 2026
Daily FT
Weerawansa fires JVP over proposed EPF changes, accuses Govt. of policy reversal
NATIONAL Freedom Front Leader Wimal Weerawansa yesterday warned that the Government is preparing to replace the existing Employees' Provident Fund (EPF) system with a pension scheme that would disadvantage workers, accusing the ruling coalition of reviving a policy it had vehemently opposed in the past.
1 min
January 08, 2026
Daily FT
Weekly T-Bill auction averages rise for 3rd straight week; Rs. 100 b auction fully subscribed
■Secondary Bond market yields drop further; market remains active
2 mins
January 08, 2026
Daily FT
MBSL Midcap Index revised for 2026
Proven stock market index brand for over 20 years
2 mins
January 08, 2026
Listen
Translate
Change font size
