Niti Aayog Advocates Tax Transformation for Trust-Based Governance

Niti Aayog has proposed a modern tax framework emphasizing trust-based governance with voluntary compliance and transparency. The working paper suggests decriminalizing minor offences, limiting imprisonment to serious cases of fraud, and shifting towards a more citizen-centric system in line with India's Viksit Bharat@2047 vision.

Niti Aayog on Friday proposed a transformative approach to India's tax system, emphasizing trust-based governance. In its working paper titled 'Towards India's Tax Transformation: Decriminalisation and Trust-Based Governance', the policy think tank highlighted the need for voluntary compliance and transparency.

The paper suggests overhauling the tax framework to align with the Viksit Bharat@2047 vision, which emphasizes growth, inclusion, and trust. Key recommendations include decriminalizing minor procedural offences and limiting imprisonment to cases of fraud, urging a shift towards a citizen-centric system to enhance the ease of doing business.

Niti Aayog CEO BVR Subrahmanyam explained the necessity of moving from enforcement-driven compliance to trust-based governance, prioritizing proportionate and transparent enforcement to empower taxpayers while safeguarding fiscal integrity.

(With inputs from agencies.)