Thursday 15 April 2010

Samaan Khareedo...Lottery Khelo!!! (Buy things...Play Lottery)

Sounds like a catchy advertisement huh?

Sales tax evasion is a major problem in many places and most of us never ask for a receipt for the things we buy,be it small or big. When it comes to big things, most people go for an agreement with the seller and get a reduction in price. When a purchase is not recorded, it doesnt come under account and thus is not taxable. So, the seller actually gives a small discount from the huge amount he saves. Every year, the government lose a lot of money in this way. Most of us do it even after knowing all these details.
Taiwan government is using a method to reduce tax evasion. This method is successful over a long period of time in this island.The title tell you what it is all about.The idea is that all the sellers should give the customers a "Receipt"(The size of the invoice, the details that should be mentioned are specified by the government). Well, but we normally never bother about the receipts. So, how can the government avoid tax evasion? Thats where lottery plays a role.
Each "Invoice" comes with an 8-digit number. This will be your lottery number. So, every time you get a receipt for a product you purchase, you automatically get a lottery. The draw is conducted every alternative month and the prices will be from 200 NT Dollars to 200000 NT Dollars (Approx US$8 to US$6500). If the last three numbers match the draw number, you get 200 NT Dollars and so on. If all the 8 numbers match you win the maximum amount. The advantage is that smaller amounts (Upto 1000 NT Dollars) can be used to buy things in convenient stores (Sure...you get a receipt for that also... Buy a lottery with a lottery...Nice huh).
Many people are not interested in these lotteries and its quite a tedious job to sit and check all the receipts you have over a period of two months. In that case, there is also a small box in front of all the stores (The boxes belong to some charity like World Vision) where people can drop the invoice.In this way, there is a chance to donate some money to such organizations (Provided the receipt you dropped wins some amount).

Note: This system may not be suitable for countries like India. Most of the retailers in Taiwan are chain stores like 7-11, Family mart etc. But, in a country like India, most stores are run by individuals and the net sales from a single store may not be very high. For expensive goods, people will still go for a discount from the seller than getting a lottery. A similar system was introduced in Argentina and was not a success.
But, the idea will surely create an awareness among people that every purchase should be billed and if such a system can bring that awareness, its already a success. Once we are adopted to a system,then we most likely will follow it and future generations will get used to it easily. After all, we cannot change things in a day.

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