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'TPC' and 'TPA': The Alternative System of Tax Collection for the Developing Countries

The system of Tax collection from the wage-earners, product-sellers, professional servicemen and renters of accommodation and equipments are known to all. This system works quite well in the developed countries. The same, however, creates problems in the developing countries due to cost for imported equipments, lack of skilled manpower and presence of personnel with questionable integrity. In the above situation, this author has proposed an alternate system of tax collection, which is non-expensive, efficient and transparent. The system comprises of : (01) Introduction of TPC or “Two-party Payment Cheque” (the employers can use this cheque for payment of wages, where the specified taxes are automatically deposited in the government account), (02) Introduction of TPA or “Two-party Payment Account” (where the product sellers, servicemen and renters can deposit the sale proceeds and their VAT or tax would automatically go to the government account) and (03) Rescheduling of the time of annual tax payment (where the final month of annual tax payment would be decided by the first letter of the tax payer’s name).