THE EDITOR, Sir:
Since the government sees the need to further increase tax revenue, it might want to consider taking ideas from other countries. While living in Taiwan I learned of a very interesting way the Taiwanese government makes sure that all businesses pay the GCT they collect from consumers. Here is how it goes:
Every consumer is entitled to a receipt for any purchase made. These receipts are issued by the tax office and every shop and other business place must use these receipts. Each of these receipts has a unique number printed on it.
Consumers collect these receipts because every two months the government organises a big draw where they serve as lottery tickets. The prizes that the government raffles there are substantial, the main prize being well above US$10,000. But almost everybody has a chance to win, because a lot of the prizes are only 10 or 20 US$. The effects have been dramatic for the collection of consumption tax in Taiwan, and the increase in income is well below the cost of the lottery.
Consumers in Taiwan nowadays demand a receipt (i.e. lottery ticket) for every purchase made, and why wouldn't they? Since the receipts that every business uses are registered with the tax office, there is no possible evasion on the side of the businesses and control has become much easier and effective.
Maybe the government here should look into equally creative ways to make sure taxes are paid and collected properly.
I am, etc.
VOLKER LAUTERBACH
vlauterbach@latinmail.com
Kingston 6
Via Go-Jamaica
