...The Value of Value-Added Tax Wayland Baptist University 3 May 2012 The Value of the Value-Added Tax Introduction Americans seem to fear taxes, but consistently complain about the economic instability of this country. A great deal of Americans does not even understand how to calculate the collection of, or expenditures of the percentage of taxes they pay on an annual basis. Other countries have adopted the value-added tax and are not in a massive hole of debt such as the United States. Is there value to the value-added tax? As history has indicated for hundreds of years, taxes are required for a country to face economic growth and to become prosperous. The income tax plan that is currently in place is not helping the United States economy in the least especially compared to our expenditures. But exactly which tax method would be of greatest value for the United States’ to begin the slow hike uphill to conquer the massive hole of debt. Is the income tax or consumption based tax best for Americans? This research paper may not answer the United States economic problems, but will define the various taxes and how they may benefit American’s current economic instability. Literature Review Mr. James R. White is the Director of Strategic Issues within the United States Government Accountability Office. The following article was in his testimony before the Committee on Ways and Means, House of Representatives, “Value-Added Taxes: Potential Lessons for the United...
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...17 January 1984 PANEL ON VALUE-ADDED TAX AND THRESHOLD Report of the Panel adopted by the Committee on Government Procurement on 16 May 1984 (GPR/21 - 31S/247) I. INTRODUCTION 1. At the request of the United States delegation the Committee on Government Procurement established the Panel under Article VII:7 of the Agreement on Government Procurement, on 23 February 1983, with the following terms of reference: "To examine, in the light of the relevant provisions of this Agreement the matter referred to the Committee by the United States in GPR/Spec/18; to consult regularly with the parties to the dispute and give full opportunity for them to develop a mutually satisfactory solution; and to make a statement concerning the facts of the matter as they relate to application of the Agreement and make such findings as will assist the Committee in making recommendations or giving rulings on the matter." (GPR/M/7, paragraph 67). The composition of the Panel was as follows: Chairman: Members: Mr. K. Berger Mr. E. Contestabile Mr. S. Sivam 2. The Panel met on 27 April, 1 June, 13 July, 15 September, 5 and 31 October, 24, 29 and 30 November and 6 December 1983. 3. In the course of its work the Panel consulted with the delegations of the European Economic Community and the United States. Arguments and relevant information submitted by the parties, replies to questions put by the Panel as well as all relevant Committee documentation formed the basis for ...
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...Reserve System and various fees and charges) make up the balance. Similarily, the “UK tax revenues come from a variety of sources. The main sources of tax revenue include: 1. Income Tax, 2. National Insurance, 3. VAT, 4. Corporation tax, 5. Council Tax (local government), 6. Business rates, 7. Excise duties (alcohol, cigarettes), 8. Other taxes include (stamp duty, carbon tax, airport tax, inheritance tax, capital gains) (Williams, R, 2009).” “The systems are most obviously similar in that they rely on income and payroll (social social security) taxes for the bulk of their revenue. But many features of the British system differ significantly from that of the US. For example, the personal income tax is based on individual rather than family income, and only about 10 per cent of taxpayers have been required to file returns in recent years. Capital gains are indexed for inflation, while deductions for mortgage interest and other items are much more limited than in the US. In general, relative to its American counterpart, the British income tax emphasizes simplicity, downplays the role of social policy and limits attempts to obtain finely tuned measures of income (Gale, W., 1997). “About 150 countries have a [Value Added Tax] VAT. It comes in different shapes and sizes, ranging from 5 percent in Japan to 25 percent in Sweden. It's easy to see why it's popular: As a broad-based tax that's easy to collect and hard to see, a VAT can rake in a lot of money. Unlike state...
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...Background of the Study Tax is an instrument to regulate economic growth and development across every economy. As a result, governments across the world impose one form of tax or the other. The main purpose of imposing tax has been for the government concerned to use the proceeds of the taxation to run the government and to provide essential services. Before a country considers efficient and effective way of administering tax system; it must possess a clear picture of the scope of its tax system as well as considering the tax rate and tax base over time. The quantity and quality of revenue required by tax administrators are to a large extent determined by the type of tax system which is introduced. A nation’s tax goals are not achieved by designing a tax system which is fair, any fair system which is not administered as planned becomes inequitable. Thus, a good tax system is capable of financing the necessary level of public spending in the most efficient and equitable way possible. It should also (1) raise enough revenue to finance essential expenditures without recourses to excessive public sector borrowing, (2) raise the revenue in ways that are equitable; that minimized its disincentive effects on economic activities, (3) do so in ways that do not deviate substantially from international norms. (Tanzi and Zee,2000). It is being noted that the aims and objectives of taxation differ from one country to the other. However, an essential common feature of tax has been the dynamic...
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...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 the problems and weaknesses of collecting revenue through VAT. Salient Features of Bangladesh’s Current Tax System: Notwithstanding...
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...ECO 450 WK 8 ASSIGNMENT 2 THE VALUE ADDED TAX To purchase this visit here: http://www.activitymode.com/product/eco-450-wk-8-assignment-2-the-value-added-tax/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO 450 WK 8 ASSIGNMENT 2 THE VALUE ADDED TAX ECO 450 WK 8 Assignment 2 - The Value-Added Tax Is It Good for the United States Write a five to seven (5-7) page paper that answers the following: 1. Explain the concept of value-added tax (VAT). This should be one to two (1-2) pages long. 2. Analyze the pros and cons of imposing a VAT. 3. Evaluate the merits of imposing a VAT in the United States. More Details hidden... Activity mode aims to provide quality study notes and tutorials to the students of ECO 450 WK 8 Assignment 2 The Value Added Tax in order to ace their studies. ECO 450 WK 8 ASSIGNMENT 2 THE VALUE ADDED TAX To purchase this visit here: http://www.activitymode.com/product/eco-450-wk-8-assignment-2-the-value-added-tax/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO 450 WK 8 ASSIGNMENT 2 THE VALUE ADDED TAX ECO 450 WK 8 Assignment 2 - The Value-Added Tax Is It Good for the United States Write a five to seven (5-7) page paper that answers the following: 1. Explain the concept of value-added tax (VAT). This should be one to two (1-2) pages long. 2. Analyze the pros and cons of imposing a VAT. 3. Evaluate the merits of imposing a VAT in the United States. More Details hidden... Activity mode aims to provide quality study notes and tutorials...
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...ECO 302 WK 8 ASSIGNMENT 2 THE VALUE ADDED TAX To purchase this visit here: http://www.activitymode.com/product/eco-302-wk-8-assignment-2-the-value-added-tax/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO 302 WK 8 ASSIGNMENT 2 THE VALUE ADDED TAX ECO 302 WK 8 Assignment 2 - The Value-Added Tax Write a four to six (4-6) page paper that answers the following: 1. Explain the concept of value-added tax (VAT). (one to two (1-2) pages) 2. Analyze the pros and cons of imposing a VAT. More Details of the Question are hidden... Activity mode aims to provide quality study notes and tutorials to the students of ECO 302 WK 8 Assignment 2 The Value Added Tax in order to ace their studies. ECO 302 WK 8 ASSIGNMENT 2 THE VALUE ADDED TAX To purchase this visit here: http://www.activitymode.com/product/eco-302-wk-8-assignment-2-the-value-added-tax/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO 302 WK 8 ASSIGNMENT 2 THE VALUE ADDED TAX ECO 302 WK 8 Assignment 2 - The Value-Added Tax Write a four to six (4-6) page paper that answers the following: 1. Explain the concept of value-added tax (VAT). (one to two (1-2) pages) 2. Analyze the pros and cons of imposing a VAT. More Details of the Question are hidden... Activity mode aims to provide quality study notes and tutorials to the students of ECO 302 WK 8 Assignment 2 The Value Added Tax in order to ace their studies. ECO 302 WK 8 ASSIGNMENT 2 THE VALUE ADDED TAX To purchase this visit here: http://www.activitymode...
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...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 than £100 in Total for that year?' This Question should say 'Was the worker paid less £100 in total for the year (leaving out those workers for whom a Form P46 is held)?' ----- "What does it mean? Search me" ---- asks the reporting newspaper. [ Daily Star, April 13, 1992, P-9, London ]. Page # 2 INTRODUCTION The origin of Value Added Tax (VAT) can be traced as far back as the writings of F...
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...is Tax? A fee charged ("levied") by a government on a product, income, or activity. A means by which governments finance their expenditure by imposing charges on citizens and entities. Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs. If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax. The purpose of taxation is to finance government expenditure. One of the most important uses of taxes is to finance public goods and services, such as street lighting and street cleaning. Since public goods and services do not allow a non-payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the good or service, and so they need to be provided by the government or a quasi-government agency, which tend to finance themselves largely through taxes. What is VAT (Value Added Tax)? VAT was introduced into the Indian taxation system from 1st April 2005. This is a kind of consumption tax which gets imposed on products or services at different stages of manufacturing and at final sale. This is a multi-point process of levying tax on value addition which is collected at different stages of sale with a provision for set-off for tax paid...
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...goods are taken for personal use or for use of others; and • When payment is received in full or in part c) In case of service rendered by registered person or by a person qualified for registration, VAT would be payable (on the taxable services) at the time of the following, which occurs first: • When the service is provided; • When the invoice relating to the service is provided; and • When payment is received in full or in part. Imposition of value added tax (VAT) – Section 3 1) The value added tax is chargeable and payable at the rate of 15% on the value mentioned in section 5, on all goods imported into Bangladesh, except the goods mentioned in the First Schedule of the Act and on the supply of all goods not listed in the said Schedule and on all services rendered in Bangladesh, except services specified in the Second Schedule of the Act. (2)Notwithstanding anything contained in sub-section (1), zero rated tax would be imposed on the following goods or services: a. Any goods or services exported or deemed to have been exported from Bangladesh; b. Food and other provision supplied to any transport leaving Bangladesh...
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...01 Definition of 'Value-Added Tax - VAT' A type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. Value-added tax (VAT) is most often used in Eurepion union. The amount of value-added tax that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed. For example when a television is built by a company in Europe the manufacturer is charged a value-added tax on all of the supplies they purchase for producing the television. Once the television reaches the shelf, the consumer who purchases it must pay the value-added tax that applies to him or her. A value added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the value added to a product, material, or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs. The purpose of VAT is to generate tax revenues to the government similar to the corporate income tax or the personal income tax. The value added to a product by or with a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately...
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... | | INDIRECT TAXATION CIA – II INDIAN TAX STRUCTURE TAXATION SYSTEM IN INDIA India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies. Central Government levies taxes on income (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax. Value Added Tax (VAT), stamp duty, state excise, land revenue and profession tax are levied by the State Governments. Local bodies are empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc. Indian taxation system has undergone tremendous reforms during the last decade. The tax rates have been rationalized and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. The process of rationalization of tax administration is ongoing in India. Direct Taxes In case of direct taxes (income tax, wealth tax, etc.), the burden directly falls on the taxpayer. Income tax According to Income Tax Act 1961, every person, who is an assessee and whose total income exceeds the maximum exemption limit, shall be chargeable to the income tax at the rate or rates prescribed in the Finance Act. Such income tax shall be paid on the total income of the previous year in the relevant assessment year. Assessee means a person by whom (any tax) or any other sum of money is payable under the Income Tax Act, and includes - (a) Every person in respect...
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...A Study on Analysis of Value Added Tax System By Ajay Dongol P.U. Reg. No. 2007-2-03-0176 Roll. No. 831455 A Summer Project Submitted to: Ace Institute of Management Pokhara University In Partial fulfillment of the requirements for the degree of Bachelor of Business Administration New Baneshwor Kathmandu December, 2009 i ACKNOWLEDGEMENT I would like to express my gratitude to Ace Institute of Management along with Mr. Prakash C. Bhattarai, our course instructor for providing us the opportunity and supervising us to carry out the Summer Project. I would also like to thank Inland Revenue Department, Lazimpat for providing me with the time and necessary materials that helped me complete this project. Similarly I would like to thank Pokhara University for providing us the opportunity to explore the outer world in due course of study. I would specifically thank the following people who have given their valuable time and advices for my project. Mr. Ram Shrestha – Store, IRD Mr. Binod Lamichane – Tax Clearance, IRD Mr. Achyut Adhikari – Taxation in Nepal Teacher, Nicolson College I would also like to thank the participants of my project, the business persons who has answer to my queries and shown some real picture of VAT system. At last I would also like to thank my friends and teachers for continual guidance and providing their valuable time in preparation of this report. Ajay Dongol BBA- IV ii Contents ACKNOWLEDGEMENT ......
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...* Budget making process. Midterm budget framework. Budget Defined * A budget (from old French bougette, purse) is a financial plan and a list of all planned expenses and revenues. * A government budget is a legal document that is often passed by the legislature, and approved by the chief executive-or president. * The two basic elements: Revenues and Expenses. * Revenues are derived primarily from taxes and non-tax revenue. * Government expenses include spending on current goods and services, which economists call government consumption ; government investment expenditures such as infrastructure investment or research expenditure; and transfer payments like unemployment or retirement benefits, Social Safety nets Basis of Budget * Budgets have an economic, political and technical basis. * Unlike a pure economic budget, they are not entirely designed to allocate scarce resources for the best economic use. * They also have a political basis wherein different interests push and pull in an attempt to obtain benefits and avoid burdens. * The technical element is the forecast of the likely levels of revenues and expenses Budget Cycle * Budget Preparation: The first phase of the budget cycle involves preparation by the departments/agencies, ministries and finally ministry of Finance * Legislative Approval: Typically, the legislature has the power to approve or reject a proposed budget. They review it and vote. If approved, it moves...
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...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 the problems and weaknesses of collecting revenue through VAT. Salient Features of Bangladesh’s Current Tax System: Notwithstanding...
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