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Consumer is king in Rajasthan's VAT compliance scheme
June, 27th 2007
Consumers in Rajasthan can look forward to winning prizes worth up to Rs.10,000 simply by asking for a bill after any purchase as the state government launches next month a unique scheme to ensure better compliance of the value added tax (VAT).

Chief Minister Vasundhara Raje, who also holds the finance portfolio, had announced the Dhanlaxmi Scheme in her budget speech in March.

"The scheme will be implemented from July 1 in Jaipur, Ajmer, Bharatpur, Udaipur, Jodhpur, Kota and Bikaner regional headquarters," Minister of State for Finance Virendra Meena told IANS.

The VAT system introduced in the state in 2006-07 functions on the basis of a cash memo, but some traders avoid the tax by not issuing a bill. The scheme is aimed at plugging the leakage in the tax collection, a senior finance department official said.

Consumers taking a bill of a value above Rs.100 will be given coupons that can be deposited in boxes placed at offices of the Sales Tax Department and other places, he said. Winners will be selected through a draw of lots every fortnight in Jaipur and every month in other cities.

There are 20 prizes of Rs.500 each and one prize of Rs.1,000, Rs.5,000 and Rs.10,000 each.

"This scheme will help us in shoring up VAT revenues," he said.
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