Information is central to tax enforcement, and taxpayers’ regular filings provide crucial information for the enforcement of value-added taxes (VAT). Yet, some taxpayers either do not file their returns or file them a long time after the deadline. With tax filings completely digitised in many countries, it is surprising that filing non-compliance remains high. IMF data suggest that between 20 and 60 per cent of eligible returns are unfiled across all major taxes, especially in low-income countries (Brockmeyer et al. 2019). This paper reports on an attempt to improve filing compliance for the Indian VAT, known as the Goods and Services Tax (GST), through low-cost behavioural nudges.
Summary of ICTD Working Paper 207.
