Proposal for naming landmarks after top taxpayers

The Economic Survey 2019 has proposed naming the important landmarks in every district in honour of the top 10 taxpayers in that area, in a bid to boost compliance.

“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 authored by Chief Economic Advisor (CEA) KV Subramanian said.

The government is banking on the behavioural economics for this. “As people often indulge in conspicuous consumption to convey their social status, top 10 highest tax payers within a district can be highlighted and accorded due recognition. This 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,” the survey said.

The moves are aimed at enhancing the tax compliance. The behavioural principles suggested in the survey to enhance tax compliance include: leverage default rules, make it easy to choose, emphasise social norms, disclose outcomes, reinforce repeatedly, leverage loss aversion and match messages to mental models.