Question

suggest way and means to bring a change in the attitude in people of india to pay taxes ​

Answer 1

Answer:

In the 2019 Union budget, finance minister Nirmala Sitharaman increased tax rates for the super-rich. She is hoping that increasing tax rates would proportionately increase tax revenue. According to supply-side economist Arthur Laffer, increased taxation does not always lead to higher tax revenue because above a certain threshold tax rate, the incentive to produce more diminishes, thereby reducing the tax revenue the government receives.

Those in the higher tax bracket, more so self-employed individuals, have the resources to find innovative ways to protect their capital from taxation. The high-tax system will also give people an incentive to do something that they would not have chosen to do at a lower tax rate. So, an individual’s willingness to pay the tax—tax compliance—is as important or more important a factor in improving tax collections than tax rates themselves.