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Government to use Big Data, Analytics for tax collections

Big Data and Analytics businesses of IT firms aim at
storing, sorting and analysing vast amounts of data across various fields like
finance, marketing, healthcare, utilities, climate and transaction records.

Big Data and Analytics businesses of IT firms aim at
storing, sorting and analysing vast amounts of data across various fields like
finance, marketing, healthcare, utilities, climate and transaction records.

As
government looks at ways to analyse huge amounts data available on corporate as
well as individuals to increase tax collections by studying various parameters
like spending patterns, IT companies expect strong growth in Big Data and
Analytics business in the coming years.

“Government is planning to use Analytics to increase
its revenue base,” said Infosys Vice President and India Business Head
Raghu Cavale. He said the country’s tax-payer base is just about 3 crore and
the number has been inching its way slowly for the last 5-10 years, which the
government would like to see growing at a faster pace.

“The economy has been been expanding, which essentially
means that the number of people coming in the tax rate should be more. But it
is not so,” Cavale added.

According to government data, the total tax payers in the
country stood at about 3.24 crore during the 2011-12 fiscal.

“As a nation, we can put together all the data. If you
travel abroad, buy expensive jewellery, we can check your digital footprints on
online shopping and piece together a person’s lifestyle and through that create
a taxable database,” Cavale said.

“So can we use this data analytics to expand out
taxable database. Our total direct taxes are only 9 per cent of our GDP,
whereas it should be about 18 per cent, and you cannot raise it by taxing
people who you have already taxed. You are going to use analytics,” he
added.

On government’s use of IT for collecting and utilising income
tax information, Cavale said, “We are discussing with the government many
projects. Some have already been tendered, which we have won. Some other people
are doing it. Government is very well aware of data warehousing and analytics.
It is talking to us as well as other firms.”

[Source: The Economic Times]
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