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The Economic survey 2019 suggests that the psychological studies can be used in the realm of tax compliance. It is in favour of using religious norms such as "dying debt is a sin" to improve tax compliance. Identify the related dimension of business environment.

A. Economic

B. Social

C. Technological

D. Legal

E. Political

Choose the correct answer from the option given below:

Solution

Correct Option: 2

Religious norms, beliefs, and psychological attitudes of people form part of the Social dimension of business environment. Tax compliance and related laws fall under the Legal dimension. Hence, using religious norms to improve tax compliance touches both Social (B) and Legal (D) dimensions.

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