New Delhi, Oct. 10 -- Government think tank Niti Aayog recommended a trust-based taxation governance system, to enhance voluntary compliance, reduce administrative friction, and improve the overall efficiency of public revenue management.

In a new working paper released on Friday, titled "Towards India's Tax Transformation: Decriminalisation and TAX BASED Governance" it said trust-based governance represents a shift from coercive or enforcement-heavy tax administration toward a mutual accountability framework where taxpayers and authorities collaborate through information sharing, digital innovation, and simplified procedures. This approach fosters a culture of compliance rooted in confidence rather than fear.

The study highlights that ...