Recognising the need for mandatory individual societal responsibility in taxation is not just a financial imperative but a moral one

Have you ever encountered the donation option while using Zomato? Amid the swift transactions and seamless food orders, there's a subtle chance to make a meaningful impact. Imagine this: a discreet suggestion to contribute an extra Rs 2 to the Feeding India program. It may seem inconspicuous, but its essence transcends mere transactions. This subtle gesture mirrors the profound spirit of every day ingrained in Indian culture. As you navigate the digital convenience of modern life, this unobtrusive act echoes India's enduring tradition of philanthropy, seamlessly integrating acts of kindness into the canvas of daily existence.

Philanthropy is deeply ingrained in the ethos of Indian culture, extending beyond mere monetary contributions. Rooted in the idea of dharma, the duty to help others is enshrined in ancient scriptures and epitomised by the practice of Zakat in Islam and Dasvandh in Sikhism. Even within Hinduism, the Vedic concept of giving without expectation aligns with the core values of social responsibility, emphasising equality and fairness.

Everyday giving in India, as quantified by Sattva Consulting's report, exceeds global standards. At Rs 34,242 crore in the year 2017, everyday giving in India is at least twice the size of everyday giving in China. Everyday givers are ordinary citizens who contribute their money, time, skills, voice, and goods to four primary destinations namely - local community, religion, disaster relief, and nonprofits. The findings reveal that informal giving to the community and religion accounts for a significant portion, with community giving covering health emergencies and basic needs. The data underscores that helping the poor is the most popular cause, and the practice of giving, often in cash, remains deeply rooted.

Philosophical Basis for Mandatory Individual Social Responsibility:

Drawing inspiration from John Rawls' principles of justice, the foundation for individual social responsibility can be philosophically justified. Rawls's first principle emphasises equal basic liberties for all, while the second principle, including the difference principle, underscores the importance of social and economic inequalities benefitting the least advantaged.

Social responsibility, therefore, branching into individual and organisational realms, aligns with Rawlsian ideals. Individual Social Responsibility (ISR) entails an ethical commitment to societal welfare. ISR, being a way of living, complements Corporate Social Responsibility (CSR), emphasising the importance of individual behaviour in fueling organisational philanthropy.

The idea that one's rights and responsibilities should be balanced for sustainable development resonates with ISR. It is not an act of sporadic charity but a constant manifestation of ethical and philanthropic behaviour. ISR involves trust, loyalty, sensitivity to societal needs, and positive participation in community life, fostering a spirit of solidarity.

As we navigate a world shaped by technological and scientific advances, the ethical dimensions of progress demand scrutiny. Michael Sandel's critique of liberalism and the quest for perfection urges us to consider the moral implications of genetic engineering and the commodification of various aspects of life.

Sandel's emphasis on communal effort, showcased in his critique of Rawls, aligns with the cultural and philosophical underpinnings of India. However, his caution against the tyranny of merit underscores the need for a nuanced approach to success, acknowledging the role of luck and fostering solidarity.

Mandatory Individual Society Responsibility in Taxation: In the quest for a more philanthropic India, a compelling proposal is to recognize mandatory individual societal responsibility as part of taxation. Similar to Corporate Social Responsibility (CSR) mandates, allocating 2% of the total individual tax burden to be spent on social needs could be transformative. This mandatory contribution would serve as a micro-donation on a national scale, channelling funds to address pressing issues such as healthcare, education, and poverty alleviation, while solving two major issues persistent in the present system - That of CHOICE (granting taxpayers the ability to designate where their tax funds should be allocated, thereby providing them with the agency in this respect) and of RIGHT (in contrast to the limited option of charity as the sole viable means of reciprocating social assistance.).

Individuals, inspired by the spirit of everyday giving, would contribute to a collective fund dedicated to the betterment of society. This approach not only aligns with cultural values but also provides a structured mechanism for societal upliftment. It further would come to address the challenge relating to untraceable informal giving by institutionalising a portion of individual contributions for impactful social causes.

In a rapidly evolving world, India stands at the crossroads of tradition and modernity. Embracing the principles of justice, social responsibility, and everyday giving can pave the way for a more equitable and philanthropic society. Recognising the need for mandatory individual societal responsibility in taxation is not just a financial imperative but a moral one.

As we ponder the profound question posed by Michael Sandel – "Do we want a society where everything is up for sale?" – the proposed paradigm shift in taxation becomes a beacon of hope. It beckons India to reaffirm its commitment to dharma, justice, and the innate spirit of giving that has defined its cultural journey for centuries. Through this transformative approach, taxation can become a tool for societal well-being, ensuring that the bounty of economic progress is shared by all.

(Vipin is a senior Public Policy Consultant and Sumit is PhD candidate and a Social Impact Consultant, views are personal)