The Million Rupee Receipt: How a Simple Lottery Could Hand Nepal’s Government Billions in Missing Taxes
Summary
Nepal’s Taxpayer Incentive Gift Program turns everyday receipts into lottery entries, offering daily and weekly cash prizes to push consumers to demand official tax invoices. The scheme aims to reduce unreported sales, expand VAT collection, and improve overall tax compliance.
Key Points
- The Ministry of Finance and the Inland Revenue Department are using a receipt lottery to encourage consumers to request official tax invoices.
- Daily winners receive Rs. 133,034 and fortnightly bumper winners receive Rs. 1,000,000, with 25% tax deducted at source.
- The programme is designed to recover missing VAT revenue and improve compliance across corporate income tax and other taxes.
- QR-code payments and bank-linked systems will help the IRD verify transactions and reduce fraudulent claims.
