Taiwan in 1951 came up with an ingenious plan to improve tax compliance: citizens taking receipts for purchases could use them as lottery tickets. Customers were incentivized, and businesses found it hard to evade taxes. The plan’s success prompted other countries, Slovakia and Greece among them, to launch similar initiatives.
India doesn’t seem to find the need yet for such schemes amid surging goods and services tax (GST) collections. Overall collections touched a record high of Rs 1.87 trillion in April 2023, though there are some differences among individual states.
The fears large manufacturing states expressed when the GST regime became operational in the financial year 2017-18 (FY18) have not materialised. The regime looked to tax at the point of consumption rather than the place of production. States which are India’s manufacturing hubs expected a loss of revenue. They have not lost by accepting GST.
Read more at : Business-Standard
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