...The Impact of Vat on the Economic Growth of Bangladesh CONTENTS * Introduction * Objectives of the study * Salient features of Bangladesh’s current tax system * Growth trends and revenue structure of Bangladesh * Contribution of direct and indirect taxes to revenue * Reasons for introducing vat in Bangladesh * Ratio of VAT to Revenue & VAT to Tax * Revenue Structure during Pre and Post VAT Regime * VAT Rates in Selected Countries * VAT Productivity in Selected Countries * Some Important Features of VAT in Bangladesh * Tax Base for VAT * Arguments For VAT * Arguments against VAT * Reforms in VAT: Current Initiatives Introduction: Value Added Tax (VAT) is imposed on value added by a manufacturer of a firm or distributors. Value added tax means a tax on the amount by which the value of an article has been increased at each stage of production. It is a multistage consumption tax imposed on goods and services, which is collected at every stage of production and distribution rather than at the retail stage alone. Objectives of the Study: We can gain knowledge about the tax system (especially VAT) of Bangladesh by studying this topic. As following aspects of tax we can learn from this study: 1. To present an overview of tax system of Bangladesh. 2. To evaluate Govt. Performance in collecting revenue. 3. To identify the effect of the tax system (especially VAT) to economic development of Bangladesh. 4. To identify...
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...An Evaluation of the Tax System in Bangladesh Ahsan H. Mansur, PRI Mohammad Yunus, BIDS Presentation Outline Salient Features of Bangladesh’s Current Tax System, Trends in Growth and Revenue Structure VAT System of Bangladesh: Performance, Recent/Past Reforms, Revenue Potential, structural and administrative deficiencies, and alleviating measures Discussions on personal and corporate income tax systems have been covered in this study, but not discussed in detail in in this presentation due to time constraint. Finally the presentation assess the scope for further reforms that the authorities may consider in order to gain more buoyancy in revenue generation POLICY RESEARCH INSTITUTE OF BANGLADESH 01 Introduction: Salient Features of Bangladesh’s Current Tax System Notwithstanding the various fiscal reforms of the recent past, Bangladesh Tax system continues to suffer from a number of major weaknesses: • • • • • • • • Low Level of Revenue Mobilisation Regressive Nature of Taxation (especially VAT) High Tax Incidence Low Tax Base High Degree of Tax Evasion Limited Administrative Capacity Resource Constraints (Human and Logistics) Cumbersome Legal Procedures 02 POLICY RESEARCH INSTITUTE OF BANGLADESH Growth Trends and Revenue Structure of Bangladesh Over the past years total revenue and tax receipts as % of GDP have increased – from 6.5% and 5.5% respectively in FY1982 to 10.9% and 9.0% respectively in FY2010. Tax receipts roughly generate...
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...An Evaluation of the Tax System in Bangladesh Ahsan H. Mansur, PRI Mohammad Yunus, BIDS Presentation Outline Salient Features of Bangladesh’s Current Tax System, Trends in Growth and Revenue Structure VAT System of Bangladesh: Performance, Recent/Past Reforms, Revenue Potential, structural and administrative deficiencies, and alleviating measures Discussions on personal and corporate income tax systems have been covered in this study, but not discussed in detail in in this presentation due to time constraint. Finally the presentation assess the scope for further reforms that the authorities may consider in order to gain more buoyancy in revenue generation POLICY RESEARCH INSTITUTE OF BANGLADESH 01 Introduction: Salient Features of Bangladesh’s Current Tax System Notwithstanding the various fiscal reforms of the recent past, Bangladesh Tax system continues to suffer from a number of major weaknesses: • • • • • • • • Low Level of Revenue Mobilisation Regressive Nature of Taxation (especially VAT) High Tax Incidence Low Tax Base High Degree of Tax Evasion Limited Administrative Capacity Resource Constraints (Human and Logistics) Cumbersome Legal Procedures 02 POLICY RESEARCH INSTITUTE OF BANGLADESH Growth Trends and Revenue Structure of Bangladesh Over the past years total revenue and tax receipts as % of GDP have increased – from 6.5% and 5.5% respectively in FY1982 to 10.9% and 9.0% respectively in FY2010. Tax receipts roughly generate...
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...Revenue Mobilisation and Economic Growth Bangladesh Economic Update November 2013 Bangladesh Economic Update Volume 4, No. 11, November 2013 Acknowledgement Bangladesh Economic Update is a monthly publication of the Economic Policy Unit of Unnayan Onneshan, a multidisciplinary research organisation based in Dhaka, Bangladesh. A team works under the guidance of Rashed Al Mahmud Titumir, comprising Shahida Pervin and Abid Feroz Khan. © Copyright: Unnayan Onneshan The content of this publication may be reproduced for noncommercial purposes with proper citation (please send output to the address mentioned below). Any other form of reproduction, storage in a retrieval system or transmission by any means for commercial purposes, requires permission from the Unnayan Onneshan. For orders and request, please contact: UNNAYAN ONNESHAN 16/2, Indira Road, Farmgate Dhaka-1215, Bangladesh Tell: + (880-2) 8158274, 9110636 Fax: + (880-2) 8159135 E-mail: info@unnayan.org Web: www.unnayan.org Bangladesh Economic Update, November 2013 Page | 2 1.INTRODUCTION This issue of Bangladesh Economic Update probes into the tax system of Bangladesh in the backdrop of falling investment, missing revenue target and growing pressure on revenue. This issue of Bangladesh Economic Update probes into the tax system of Bangladesh in the backdrop of falling investment, missing revenue target and growing pressure on revenue. Bangladesh has comparatively lower tax to GDP ratio, even compared to most of its...
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...[pic] Department of Accounting Term Paper On [pic] (Value Added Tax) Submitted To – Supervisor Mrs. Ummea Hazera Khatun Assistant Professor Department of Accounting Lalmatia Mahila College Submitted By – Nilima Akther BBA (Honor’s) 2nd year Roll No. - 9808944 Registration No. – 1860636 Session – 2010-2011 Department of Accounting Lalmatia Mahila College Date of Submission – 21 May 2014 Acknowledgement At first I would like to express my gratitude to the almighty Allah. It is the part of BBA program to submit a term paper. And as a student of BBA program of Lalmatia Mahila College, I have to submit a term paper report. My term paper topic is “Value Added Tax”. I have completed this term paper with the supervision of the Department of Accounting of Lalmatia Mahila College. Her cordial assistance and advice have influenced me much to complete this task. I would like to express my sincere gratitude to all my teachers of the Department of Accounting of Lalmatia Mahila College, who have conveyed all the knowledge and necessary information to make enable to complete my Term paper successfully and provide me the opportunity to prove myself in the vigorously competitive modern area. I would like to deliver my special thanks to all my classmates and my entire well-wishers for their inspiration without which I would not be able to complete this term paper report. Declaration I do hereby...
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...ativeBudget Analysis: The present Budget of Bangladesh for the year FY14-15 has been presented at a time when the Bangladeshi economy is heading towards a high growth trajectory, albeit certain challenges such as elevated inflation, high Current Account Deficit (CAD), and moderating growth of industrial production, lack of capital investment, poor level of power & energy, low level of liquidity, etc. At the current juncture, what was required from the Budget was to address the issue of inflation and support growth momentum, while maintaining the focus on fiscal consolidation and continuing ahead on the reform agenda. Increased allocation of planned resources towards infrastructure projects along with the proposals to direct foreign funds and private saving towards infrastructure sector will unlock much of the growth potential of the sector. Although the continued force on infrastructure along with power & energy, agriculture and education sectors is expected to provide significant impetus to economic growth in the medium-term, measures to control inflation in the immediate future were missing in the budget announcements. On the fiscal deficit front, the budgeted fiscal deficit is 5% of GDP for FY14-15. This indicates government will face lot of trouble in near future. This can be reduced through increasing Tax revenue, reduce debt service liability and etc. Budgeted Expenditure for FY14-15 For FY14-15, total expenditure is budgeted to increase by 15.9% to 250,506...
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...STRUCTURE, ADMINISTRATION OF VAT IN BANGLADESH WITH SPECIAL REFERENCE TO EVASION CONTROL AND MEASUREMENT OF VAT POTENTIAL DR. RAFIQUL ISLAM First Secretary VAT : Policy National Board of Revenue Government of Bangladesh. (The author acknowledges special thanks to Mr. Saiful Islam Khan, Member (VAT), NBR for his constant guidance in preparing this article. Dr. Mahesh C. Purohit, Professor of National Institute of Public Finance and Policy, New Delhi, India was kind enough to comment on the initial draft which helped to improve it. However, the views expressed in the article are of the author and do not necessarily reflect any opinion of the organisation he serves) Taxing Our Patience Communication is all about people being able to understand each other. Except when it comes to Government forms and directives. That's when middle brained civil servants are in a class of their own. The following is in latest example which arrived in employer's offices courtesy the Inland Revenue : "Errors on form P38A (1992). Form P38A (1992) was enclosed with the form P35 (Employer's annual return) sent to you in late January / early February. We apologise for the fact that Form P38A contained the following two errors. 1. Question No. 1 of the check list on Form P35 says you should complete form P38A if you answer 'No' to this question. However, Form P38A itself asks you to complete it if you answered 'Yes' to Question 1 on the form P35. 2. On form P38A Question 3 asks 'Was the worker paid less...
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...Convention, October 12th, 2002, Washington DC, USA Review of the Tax System in Bangladesh A Prerequisite for Industrial Growth T. A. M. Nurul Basher* E-mail: nurul-basher@betelco.com Abstract - This paper has been written to highlight the sustainable industrial growth problems being faced by the entrepreneurs in Bangladesh. There are multifarious problems for Industrial growth in Bangladesh but the major bottleneck is the adverse tax system. There exists no consideration for industrial raw materials import in so far as application of duties and taxes compared to those of finished consumer goods. The net result is increase in production cost which in turn makes the product noncompetitive. So as not to create an extra burden on industrial productions, the government needs to remove duties and taxes from imported raw materials as in many Middle Eastern countries and Thailand. The government implicitly accepts the adverse effects of the improper taxes on our industrial growth and has tried partially to alleviate some of these impediments by creating Export Processing Zones and Bonded Ware Houses; this paper explores the benefits doing away with these high import duties altogether. It also looks at the paybacks to the economy from industrial growth. Finally, the expansion of the income tax umbrella is considered and in particular its effects on growing a greater sense of national civic duty and its impact on the voting patterns of the electorate. [1] to this, the average per-capita...
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...Session : 2009–2010 National University Syllabus for 4 years B. B. A. Honours Course Subject : Management Second Year (Honours) |Subject Code |Subject Title |Marks |Credit | | |Business Communication and Report Writing (In English) |100 |4 | | |Computer and Information Technology |100 |4 | | |Taxation in Bangladesh |100 |4 | | |Business Statistics (In English) |100 |4 | | |Macro Economics |100 |4 | | |Human Resource Management |100 |4 | | |Viva-Voce |100 |4 | | |Total = |700 |28 | |Course Code | |Marks: 100 ...
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...STRUCTURE, ADMINISTRATION OF VAT IN BANGLADESH WITH SPECIAL REFERENCE TO EVASION CONTROL AND MEASUREMENT OF VAT POTENTIAL DR. RAFIQUL ISLAM First Secretary VAT : Policy National Board of Revenue Government of Bangladesh. (The author acknowledges special thanks to Mr. Saiful Islam Khan, Member (VAT), NBR for his constant guidance in preparing this article. Dr. Mahesh C. Purohit, Professor of National Institute of Public Finance and Policy, New Delhi, India was kind enough to comment on the initial draft which helped to improve it. However, the views expressed in the article are of the author and do not necessarily reflect any opinion of the organisation he serves) Page # 2 Taxing Our Patience Communication is all about people being able to understand each other. Except when it comes to Government forms and directives. That's when middle brained civil servants are in a class of their own. The following is in latest example which arrived in employer's offices courtesy the Inland Revenue : "Errors on form P38A (1992). Form P38A (1992) was enclosed with the form P35 (Employer's annual return) sent to you in late January / early February. We apologise for the fact that Form P38A contained the following two errors. 1. Question No. 1 of the check list on Form P35 says you should complete form P38A if you answer 'No' to this question. However, Form P38A itself asks you to complete it if you answered 'Yes' to Question 1 on the form P35. 2. On form P38A Question 3...
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...UK ECONOMY GROWTH FROM DEEP RECESSION: In UK, while considering the level of the decline is found by 2 factors, * After the big fall of international banking system there is more weakness in credit zone. * Failure in spending and producing the products by lack of confidence Recuperating the Economic level is not possible in short period. In 2009, UK GDP falls to 6%. It initially shows the negative GDP in 3rd and 4th quarters in 2008 and the government project there is no growth in country’s GDP till 2010. The analysis reported that the decline will be smaller in continental Europe. The organization for Economic Co-operation and Development (OECD) analysed and reported that retardation has been more “distinct than projected”. As a result, in 2010 the growth forecast for the leading economies reduces to 1.5% from 1.75%. Due to recession the consumer is less in purchasing of apparels. The retailer already imported huge amount of apparel goods. The inventory level is increased with most of the retailers in UK. As the supplies of apparel is more and demand in the market is less because of recession. The price of apparel is reduced. The less demand in market made the retailers to reduce the garment sales price by giving more discounts is directly reducing their profit margins. IMPACT OF CRUDE OIL PRICE INCREASE: considering the crude oil production down in 2008 which increases the price of the crude oil from $40 barrel to $92 per barrel. The increase in crude oil...
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...Term Paper for BBA (Hon’s) Second year course Department of Management Sherpur Govt. College, Sherpur. Topic: “Accounting Aspect of VAT in Bangladesh.“ Submitted by: Sadhan Krisna BarmanExam. Roll No: 9823502 Registration No : 1806089 Session: 2010-2011 BBA (Hon’s) Second year Class Roll No : 847 Sherpur Govt. College,Sherpur. Date of Submission : February 02, 2014 Chapter Particulars Page No Letter of Transmittal i Preface ii Abstract iii Acknowledgement iv Chapter: 1 1. Introduction 1 Chapter: 2 2.1 Objectives of the Article 2 2.2 Tax System in Bangladesh 2 2.3 Introduction of VAT in Bangladesh 4 Chapter : 3 3.1 Features of VAT in Bangladesh 7 3.2 Efficiency and Productivity of VAT 8 Table 1 : Tax/GDP ratio and various taxes as a percentage of total tax revenues 9 Table 2: VAT as part of Bangladesh tax system: 10 Table for 2002/03-2007/08 based on data 10 Table 3: VAT’s efficiency 11 Chapter: 4 4.1 Reforms in Bangladesh’s VAT 13 4.2 Implementation Problems 14 4.3 Services: 15 4.4 Improving Taxpayer Compliance: 16 4.5 Review of Compliance Concessions: 16 4.6 Recommendations 17 Chapter: 5 5.1 Conclusion 19 Reference: 20 Chapter-1 1. Introduction The origin of Value Added Tax (VAT) can be traced as far back as the writings of F Von Siemens, who proposed it in 1918 as a substitute for the then newly established German turnover tax. Since then numerous economists have recommended it in different...
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...one year but an individual needs not balance his budget during a given period. 3: Deficit financing: deficit financing is a peculiar privilege of government but an individual can not do it, unless he is prepared to go behind the bars. 4: Different objectives: an individual tries to maximize his satisfaction or profit from a given amount of resources but the objective of government expenditure is to maximize social benefit. 5: Publicity of finance: budgets are published and the widest publicity is given to them. On the other hand, the secrecy surrounds individual finance. 6: Coercion: a government has to pass a law and compel the citizen to pay a tax while an individual lacks the coercive authority. How public finance related to the economic system? Explain Answer: Public finance describes finance as related to sovereign states and sub-national entities (states/provinces, counties, municipalities, etc.) and related public entities (e.g. school districts) or agencies. It is concerned with: Identification of required expenditure of a public sector entity Source(s) of that entity's revenue...
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...that we observed through this report will help us in our future, indeed. We would like to convey our special thanks and gratitude to you for patronizing our effort & for giving us proper guidance and valuable advice. You will be delighted to know that, we have tried our best to make this report more & more informative and factual. Sincerely Yours, Bodrun Nesa Ali Roll No: 20-008, Section-B Department of Finance University of Dhaka (On behalf of Group No, #__ ) Sincerely yours ---------------------------- Table of Contents No. | Particulars | Page No. | 1. | Executive Summary | 06 | 2. | Introduction | 07-09 | 3. | Pre-budget Discussion on The Fiscal Year 2015-16 | 10-38 | 4. | Theory of Budget and Brief Budget of Bangladesh...
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...MEDIA BRIEFING AN ANALYSIS OF THE NATIONAL BUDGET FOR FY2015 06 JUNE 2014 CPD IRBD 2014 TEAM Dr Debapriya Bhattacharya, Distinguished Fellow CPD and, Professor Mustafizur Rahman, Executive Director, CPD were in overall charge of preparing this report as the Team Leaders. Lead contributions were provided by Dr Fahmida Khatun, Research Director; Dr Khondaker Golam Moazzem, Additional Research Director and Mr Towfiqul Islam Khan, Research Fellow, CPD. Valuable research support was received from Mr M Shafiqul Islam, Additional Director, Administration & Finance; Ms Khaleda Akhter, Senior Research Associate; Mr Muhammad Al Amin, Senior Research Associate; Mr Kishore Kumer Basak, Senior Research Associate; Mr Md. Zafar Sadique, Senior Research Associate; Ms Mehruna Islam Chowdhury, Senior Research Associate; Mr Uttam Kumar Paul, Deputy Director, Accounts; Mr Mashfique Ibne Akbar, Research Associate; Ms Farzana Sehrin, Research Associate; Ms Saifa Raz, Research Associate; Ms Umme Salma, Research Associate; Ms Umme Shefa Rezbana, Research Associate; Ms Mahenaw Ummul Wara, Research Associate; Dialogue Associate; Mr Md. Naimul Gani Saif, Research Associate; Mr Mohammad Afshar Ali, Research Associate; Ms Shahida Pervin, Research Associate; Ms Afnan Ashfaque, Research Associate; Mr Mostafa Amir Sabbih, Research Associate; Ms Kashfi Rayan, Research Associate; Ms Shahzeen Hafiz, Programme Associate; Mr Ziad Quader, Research Intern; Ms Nadee Naboneeta Imran, Research Intern and Mr...
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