Slovakia launches receipt-lottery to fight tax evasion

To encourage shop keepers to print receipts and pay value-added taxes, Slovakia will turn every receipt into a lottery ticket.

270813_Receipt_AAP

(AAP)

Every store receipt in Slovakia will double as a lottery ticket as of September, the finance ministry said, in a bid to fight tax evasion.

   

Residents will be able to register the serial number of each receipt in a national lottery system from which 10 winners will be drawn twice a month.

   

The top prize will be 10,000 euros ($A 14,900), but lucky shoppers will also be able to score smaller sums of cash or a new car.

   

"We want to give people an incentive to request a receipt every time they make a purchase and help prevent tax evasion," Finance Minister Peter Kazimir told reporters.

   

"Many of us rarely request a receipt but not everyone knows how much money is lost in the grey economy because of that."

   

Slovakia has two value-added-tax rates: a 10-per cent rate applies to books, medication and medical items such as contact lenses, while a 20-per cent rate applies to everything else.

   

When vendors sell their goods without a receipt, they essentially avoid paying the VAT.

   

Slovakia loses around 150 million euros in revenue each year due to the grey economy, according to the ministry.

   

Tax evasion is a constant worry for the government - especially as it struggles to cut its budget deficit gap to under the EU ceiling of three percent of gross domestic product.

   

Georgia launched a receipt lottery last year but cancelled it after seven months due to the low impact on national revenue.

   

Taiwan and Malta also have similar lotteries.


Share

2 min read

Published

Source: AFP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world