Guatemala Tax

Guatemala Tax

Background

• Behavioral science aims to make desired actions the easiest option.
• Unlike legislation or incentives, it often costs little to apply

Project:

• Aim to increase tax revenues at low cost and without introducing new legislation.
• With tax year just over and Guatemalans preparing to send reminder letters to those still to declare their tax, decided to modify letters’ wording using behavioral insights. They would then follow each individual to see what effect the changes had.
• In all, just over 43,000 citizens yet to file their tax return divided into 6 groups. – First group was not sent a letter and second group got the standard letter, while other four groups received modified letters.

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