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Opinion: New invoices expected to invoke better tax awareness
( 2002-08-02 09:48 ) (1 )

The significance of new invoices in Beijing goes far beyond the predictable increase in tax revenue.

A new version of invoices debuted in some parts of Beijing on Thursday, offering receivers a chance to win prizes ranging from 100 yuan to 5,000 yuan (US$12 to US$610).

The special invoice control system has also proven more effective in preventing tax fraud.

Trial use of such new invoices in Huairou, a district in Beijing, brought in an extra 6 million yuan (US$723,000) in tax revenue last year, with a total prize payment of 140,000 yuan (US$16,900).

The prizes make the new invoices more easily accepted among the public.

Amid heated discussion about taxation reform, the replacement of the old version of invoices by a fraud-proof one conveys to all that an efficient taxation system is no longer just talk.

As the State substantially increased public investment in an uphill struggle to maintain economic growth in recent years, authorities had to strengthen their tax collection to replenish the nation's coffers.

But along with the rapid growth in tax revenues came tax-related loopholes and violations.

The recent arrest of film actress Liu Xiaoqing on charges of large-scale tax evasion by the firm she ran is one such problematic example. Also disheartening is the report that spot checks by the Beijing Taxation Bureau in the first half of the year found as many as 71 per cent of the 7,166 businesses examined failed to pay taxes on time.

Although the tax authority has beefed up its campaign against tax evasion in recent months, the severity of these problems indicates that more social support is urgently needed to curb rampant tax crimes.

Encouraging residents to demand invoices will not only help reduce tax evasion by traders but also improve people's understanding of their rights and obligation as taxpayers.