Such steps can also help propagate the social norm that “paying taxes honestly is honourable”, the Survey said.
The Economic Survey has recommended that the top 10 taxpayers within a district should be publicly recognised to encourage tax compliance.
In India, people often indulge in conspicuous consumption to convey their social status, and the tag of a top taxpayer would be one way of making a statement.
“This (recognition) 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 said.
The idea was 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.
India’s direct tax-to-GDP ratio of 5.98 percent achieved during fiscal 2017-18 was the best in the last 10 years, but is abysmally low when compared to developed nations.
