New Delhi: Public trust in tax remains strongest in Asia and India stands out for its relatively strong tax morale and trust in the fiscal system, a report showed on Monday.
Nearly 45 per cent of Indian respondents believe that tax revenues are spent for the public good, while 41 per cent view paying taxes as a contribution to their community rather than an additional cost, reinforcing the idea of tax as a shared civic responsibility, according to the report released jointly by ACCA, IFAC, Chartered Accountants Australia and New Zealand (CA ANZ) and the OECD.
Reflecting high ethical standards, 68 per cent of Indian respondents said they would never justify cheating on tax, even if given the opportunity, the report noted.
Additionally, the survey also highlights India’s strong alignment between taxation and sustainability outcomes, with 80 per cent of Indian respondents indicating they would be willing to pay a small to significant additional amount of tax to support sustainable development goals, underscoring broad public acceptance of fiscal policy as a tool for long-term social and environmental progress.
“Findings from India mirror a broader Asian trend where trust in taxation remains comparatively strong, driven by perceptions of fairness, transparency, and public value. The willingness of Indian respondents to contribute more through taxes to support sustainable development also reflects a growing alignment between fiscal policy and long-term societal goals,” said Md. Sajid Khan, Director–India at ACCA.
The results revealed that taxpayers across Asia largely view their tax systems as equitable and are significantly more confident that their taxes deliver fair public value compared to survey respondents across other regions.
Across all 29 countries surveyed, respondents were more likely to view tax as a contribution to their community rather than a cost, indicating strong support for the fiscal contract in theory. This sentiment was strongest in South-East Asia, where nearly two-thirds (64.7 per cent) agreed.
“Asia’s strong public trust in taxation offers valuable lessons for the world. People here see tax as a contribution to the community, not just a cost, but that trust can’t be taken for granted,” said Helen Brand OBE, Chief Executive of ACCA.
Manal Corwin, Director of the OECD Centre for Tax Policy and Administration, commented that “this is the first phase of a new project for the OECD looking at tax morale in Asia”.
“We will discuss these results with governments in the region over the next year to identify the drivers of trust in tax across Asia, and best practices to build trust. This will help governments design fairer, more responsive and more coherent tax systems,” Corwin added.
(IANS)
