Soon, GST officers will study the behavioural pattern of certain taxpayers to nudge them to comply with tax laws. In a departure from the current practice of focussing only on deterrent action to check evasion.

The CBIC has set up a ‘Nudge Team’ to formulate a strategy on studying behavioral patterns of taxpayers. And use segmented approach to encourage them to pay taxes.

The plan is based on ‘behavioral interventions’ or ‘non-deterrence approach’. Adopted by countries like the UK, Australia and Mexico to frame policies and increase tax collections.

“On the basis of the behavioral pattern, the dept will segregate taxpayers into different categories like ‘disengaged’, ‘resisters’, ‘triers’ and ‘supporters’,” .

In cases of non-wilful defaulters, the tax dept would adopt a soft approach to persuade them to comply with tax laws by sending them personalized emails reminding them about the default in tax payment cycle.

Efforts will also be made to educate these taxpayers about provisions like payment of taxes in installments. In case of liquidity crunch, and other benign provisions of the tax laws. To enable them to comply with statutory provision.