Question

The Economic Survey, 2019 suggests that the psychological biases can be used in the realm of tax compliance. It is in favour of using religious norms such “dying in debt is a sin” to improve tax compliance. Identify the related dimensions of business environment.

पर्याय

• Political and Social Environment

• Economic and Political Environment

• Legal and Social Environment

• Economic and Social Environment

Answer 1

Economic and Social Environment

Explanation:

The case discusses how psychological and religious beliefs can be used to improve tax compliance, which involves two key dimensions:

1. Economic Environment:
   • Tax compliance directly relates to government revenue, fiscal policy and economic behavior of individuals and businesses.
   • The Economic Survey is a tool to assess and guide economic planning and policy.
2. Social Environment:
   • The use of religious norms like “dying in debt is a sin” reflects the influence of social and cultural beliefs on behavior.
   • It highlights how values, traditions, and ethics can be used to influence economic actions.