In a unique way to persuade taxpayers into paying GST will be tried by the GST officers according to a newly ‘Nudge team’ formulation which would further develop strategies based on the behaviour of the taxpayer.
The Central Board of Indirect Taxes and Customs (CBIC) is all set to propose a Nudge team which will further create a strategy to approach the taxpayers according to the segmented manner.
It is also called as ‘behavioural interventions‘ or ‘non-deterrence approach’ as conducted in the foreign countries including UK, Australia and Mexico as to constitute tax policies and raise tax collections.
According to one official, “On the basis of the behavioural pattern, the department will segregate taxpayers into different categories like ‘disengaged’, ‘resisters’, ‘triers’ and ‘supporters’,.”
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According to the plan, the non-wilful defaulters will be handled with a soft approach with guiding them towards the tax compliances and making them aware about their duties.
Then there is ‘disengaged’ who are deliberately evading themselves form the tax compliance due to some lacking from the govt. Those can be informed and persuaded towards their tax responsibilities while the govt also needs to be equally concerned about the issues.
After which there is ‘triers’ who are trying to comply with the tax laws but with some difficulties they cannot cope up with the system. At last, there are ‘supporters’ who are defined as fully compatible with the tax laws.
The officer said that “Tax officers will adopt a different approach to deal with different categories of taxpayers based on the behavioural pattern.”
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The meeting of ‘Nudge team’ is stated to be happening soon under the directorship of the Principal Director General GST which will further understand the know-how of the strategy and decide on strategies to adopt such measure.
