We are reporting below a clipping of a newspaper Daily Khaleej Times reproduction. In India, one a local government has launched a scheme for the implementation of VAT (Value Added Tax) Sales Tax. We request you to give, a thought to it and maybe we can use such type of tools to encourage tax paying culture.
-- "Khaleej Times" August 30, 2006
-- "Lucky VAT" launched to boost tax compliance
-- "Trivandurm - "Lucky Vat", a mechanism conceived by Kerala government to encourage tax compliance among shoppers, came into force yesterday (August 30).
"The mechanism, which has been successfully tried in the South American country of Venezuela, envisages each prize up to Rs 100,000 to the shoppers, who take bill against the purchase made from a merchant, registered under the VAT system.
"The shopper will get one scratch card for every bill that total Rs 1,000. Those who do not make purchase of Rs 1,000 at a time, can keep the bills till the amount reaches Rs 1,000 and then get the scratch coupon. The shopper will be able to know whether he has won a prize or not by scratching the coupon at the spot.
The prize amount will be indicated on the coupon. Cash prizes range from Rs 10 to Rs 100,000. Prizes up to Rs 5,000 can be collected from the shop itself and others from the nearest branch of the Kerala State Financial Enterprises, a state government undertaking.
"The purchaser will have to submit to the KSFE branch a form issued by the shopper concerned, besides document to prove his identity. The KSFE will crosscheck the coupon with the taxes department and release the prize within three to four days. Lucky VAT covers over 130,000 merchants registered under the VAT system in the state.
"The mechanism has been introduced to boost the government revenue. Finance Minister Thomas Isaac said that the state was now collecting only one third of the taxes due to the state."
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