Pay Tax & Get Reward from Government

By: Makemymoney

Looks like good initiate taken by the Indian government to increase the number of taxpayers authentically. The program of pay tax & get a reward from the government is planned to reward and recognize honest taxpayers. This will encourage people to pay tax and on time as well. The reward is yet to plan but there are assumptions that there will be rewards like priority check at the airport, airport lounge access, passports on priority or even a cup of coffee with state governor etc. These could be a reward for an exemplary taxpayer.

The government has taken another type of initiation to aware people about tax. This will also compliment honest taxpayers and encourage them to do the same again and again. A committee has been set up under the Central Board of Direct Taxes. The CBDT will be responsible for planning and executing this reward plan. 

It is a clever move by the government as it will be helpful in uprooting black money, tracking operation clean money, corruption etc. Also, the government feels that there is a need to highlight honest citizens by giving those rewards as this will encourage other people for filing income tax return.

The CBT committee is working on reward programmers by looking at various other countries that are in a practice of giving a reward to honest taxpayers. The reward has nothing to do with tax amount paid by citizens but the regularity in the filing of a return or never being penalized or prosecuted. Earlier, in 2004 a program “Samman” was started by the government but for some reason, the scheme was discontinued.

Countries that practice Reward Scheme

There are many countries that follow a reward scheme to appreciate honest taxpayers. Countries like Japan, South Korea, Philippines, and even Pakistan are very active about appreciating honest citizens. Japan reward by offering photography with the employer. In South Korea, the taxpayer receives certificate and access to airport VIP lounge and free parking. The Philippines, honest taxpayers have their name on a lottery for compliance under the value-added tax regime.







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