Involves illegal activities such as under-reporting income, over-reporting expenses, concealing assets, or operating entirely in the informal economy.

Leads to substantial revenue loss for the government, hindering public spending on infrastructure, social welfare, and development projects.

Creates an uneven playing field for honest taxpayers and businesses, distorting competition.

Contributes significantly to the growth of the black economy or shadow economy, impacting official economic statistics.

Can be prosecuted under various tax laws, leading to penalties, fines, and imprisonment, depending on the severity.

The new capacity-based excise duty aims to reduce tax evasion by making it harder for manufacturers to under-report actual production, as duty is based on machine capacity.

Measures to combat evasion include data analytics, information sharing between departments, stricter audits, and technological solutions like e-invoicing.

Often associated with sectors where cash transactions are prevalent, production is difficult to monitor, or goods are easily smuggled.

Involves illegal activities such as under-reporting income, over-reporting expenses, concealing assets, or operating entirely in the informal economy.

Leads to substantial revenue loss for the government, hindering public spending on infrastructure, social welfare, and development projects.

Creates an uneven playing field for honest taxpayers and businesses, distorting competition.

Contributes significantly to the growth of the black economy or shadow economy, impacting official economic statistics.

Can be prosecuted under various tax laws, leading to penalties, fines, and imprisonment, depending on the severity.

The new capacity-based excise duty aims to reduce tax evasion by making it harder for manufacturers to under-report actual production, as duty is based on machine capacity.

Measures to combat evasion include data analytics, information sharing between departments, stricter audits, and technological solutions like e-invoicing.

Often associated with sectors where cash transactions are prevalent, production is difficult to monitor, or goods are easily smuggled.