Budapest - In its latest move to whiten Hungary's huge black economy, the government has teamed up with the state-owned national lottery company to give shoppers the chance to win cash prizes if they demand a receipt for goods and services. From January 1, anybody over the age of fourteen can enter a receipt for certain goods or services into a new prize draw, government spokeswoman Bernadett Budai told the press on Monday.
The government is gambling that Hungarians will demand a receipt and willingly pay VAT at 20 per cent in return for the chance to win a million forints (3,654 euros).
The "Receipts for Millions" scheme is targeting trades that have a reputation for a lax attitude towards taxpaying. Receipts for banking services and public utilities cannot be entered.
Punters will be able to enter the monthly draw by sending in an SMS text message with the serial and tax numbers of receipts they have collected from hairdressers, plumbers, taxi drivers and other small traders.
Contestants can enter as many receipts as they like into the draw, said spokesman Laszlo Somorai of Szerencsejatek, the state-owned company that runs Hungary's popular national lottery.
Ten winners will be announced each month, starting on February 2, and participants will have one week to present their winning receipt. The million-forint prize is equivalent to around six months' wages for an average Hungarian.
The government is investing around half a billion forints in advertising the scheme. Budai acknowledged that the nature of the black economy means it will be difficult to quantify any returns on this investment.
Conservative estimates suggest that about a fifth of economic activity in Hungary currently takes place off the books and untaxed. "Receipts for Millions" is one of numerous strategies the government is using to crack down on the black market.
A combined undercover action by police, tax and customs officials codenamed "Sparkler II" took place for the second year this Christmas.
Stallholders at Budapest's popular Christmas markets reacted by emphatically handing receipts to purchasers of seasonal wares such as mulled wine and knitted socks.
