Brilliant. Novel lottery system that raised Tax Income in Taiwan by between 59-75%

tiwan

Brilliantly simple idea to address the ‘black’ / cash economy in Tiawan. To encourage people to buy from tax registered businesses tills are equipped to print a random number on each receipt which acts as a lottery number. Those tills automatically send the sales information to the tax office.

This novel idea has increased tax revenues in Tiawan by between 59-75%.

We’ve seen broken economies like Greece impact all of the Euro Zone economies over the last few years, and much of their economic woes are because tax avoidance is culturally acceptable. It can take generations to change culture. The brilliance of this idea is that it creates an incentive to buy products from businesses that play by the rules (and therefore a disincentive not to play by the rules). Clearly you can change that behavior in weeks or months!

Full story on the bbc website, click here, http://www.bbc.co.uk/news/business-23057852

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s