Wednesday, October 03, 2012

How China got businesses to pay taxes: scratch-n-win tickets - CSMonitor.com

How China got businesses to pay taxes: scratch-n-win tickets - CSMonitor.com: "Businesses purchase special machines that print special receipts known as fapiao in addition to regular receipts, called shouju, that cash registers provide. Every time a receipt is printed, a transaction is recorded and taxes must then be paid on it. To ensure owners actually use the machines, the government got creative: The fapiao that the machines print out are essentially scratch-and-win tickets with prizes ranging from 5- to 50,000 yuan ($.75 to $8,333). For perspective: A subway ticket in China is 2 yuan, and a monthly phone bill is about 60 to 127 yuan for an iPhone.

Following the implementation of the program, the frequency of customers asking for receipts increased dramatically, according to a 2009 survey conducted by Mr. Wan. Those who had never requested receipts began asking for them one out of every two transactions. The frequency of those who requested receipts before the fapiao program was implemented increased by 30 percent after hearing about the program."

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