Cash Receipt Lottery: Earn Up to Rs. 1 Million—Eligible Bills and Participation Criteria Explained
The government’s lottery program for receipts, announced through the budget, is set to be implemented shortly after the Ministry of Finance completes the procedural guidelines.
According to the guidelines, one winner each day and one winner every 15 days will receive Rs. 193,034 and Rs. 1,000,000 respectively through the receipt lottery.
The “Taxpayer Incentive Gift Program Operating Procedures 2083” aim to promote a culture of proper invoicing in the buying and selling of goods and services and to motivate consumers to compulsorily obtain bills.
Finance Secretary Ghanshyam Upadhyay explained that the program is designed to encourage taxpayers. “This will enhance the practice of issuing and receiving bills, improve tax compliance, and reward aware taxpayers, which is the government’s expectation,” he said.
What Are the Participation Criteria?
The government has set certain conditions for participating in the receipt lottery system.
Firstly, consumers who purchase goods or services worth more than Rs. 100 in a single transaction within Nepal are eligible.
Consumers must obtain either a Value Added Tax (VAT) bill or a Permanent Account Number (PAN) bill when purchasing goods or paying for services such as dining at restaurants.
The bill number will serve as the lottery number.
Both online and cash payments are accepted.
So, what should general consumers keep in mind to benefit from this program? Keshav Raghuvanshi, Director and Information Officer of the Inland Revenue Department, mentioned some conditions.
“If payment is made online, it will be automatically entered into the system and the consumer does not need to take additional steps. But if the payment is in cash and the bill is on paper, the consumer must enter that information manually into the system,” he explained.
The department is developing a platform for this entry. “Consumers will need to input details such as the bill number, their personal information, the vendor’s permanent account number (PAN), invoice date, amount mentioned on the bill, buyer’s name, and mobile number,” Raghuvanshi added.
“Consumers must keep their bills safely.”
When Will It Be Implemented?
Finance Secretary Ghanshyam Upadhyay said that the lottery program will apply retroactively, covering transactions from the first day of the month of Shrawan (mid-July).
Once procedural guidelines are received from the Finance Ministry, the Inland Revenue Department, the agency responsible for executing the program, has begun necessary technical preparations and will implement the program “soon.”
“The guidelines are in place. We will soon arrange the required budget and complete technical work for prompt implementation,” said Director Keshav Raghuvanshi.
“Since this program is included in the budget, the necessary funds are being arranged and the technical system is nearing completion.”
How Much Tax Will Be Deducted from the Prizes?
According to the procedures, all purchase receipts recorded through electronic payments and manually entered invoices from the first to the last day of each month will be included in the lottery.
The daily lottery prize of Rs. 193,034 will be awarded every day, and the bumper prize of Rs. 1,000,000 will be given every fifteen days.
The department will select lottery winners on the 1st and 16th of every month.
On the 1st of the month, winners will be selected from invoices entered between the 16th and the end of the previous month, while on the 16th, winners will be chosen from invoices entered between the 1st and 15th of the current month through an “automated system.”
Prize earnings through the lottery will be subject to tax deductions.
“A 25% tax will be deducted from daily prizes, so winners will receive Rs. 100,000 in hand, and for the raffle prize given every fifteen days, the winner will receive Rs. 750,000 after tax,” Director Raghuvanshi stated.
Which Transaction Bills Are Ineligible?
Certain types of transaction bills are excluded from the receipt lottery, as specified in the guidelines.
These include bills issued for business purposes or from government entities and public institutions.
Additionally, receipts for telephone, internet, electricity services, vehicle and transportation fares, and airline tickets are also considered ineligible.
Bills from persons without a Permanent Account Number (PAN) are disqualified.
Finance Minister Dr. Swarnim Wagle, part of the government formed after the February 21 elections, stated the objective of the program is to potentially increase revenue through consumption and to incentivize taxpayers by introducing the lottery system.
According to Nepal Rastra Bank data, one-third (30%) of the government’s total revenue is derived from VAT, while income tax contributes 22%, customs duties 20%, and excise tax 16%.
Until the end of Asar in the previous fiscal year, total revenue collection was Rs. 12.41 trillion.
“Many consumers tend not to ask for or keep bills. While we do not have precise data on this, the government expects the lottery program to raise awareness among consumers,” Director Raghuvanshi added.
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