...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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...VALUE ADDED TAX ACT, 1991 (22 No. ACT OF 1991) [Date of assent of the Acting President and publication in the official Gazette, the 10th July, 1991/25th Ashar, 1398 (BS)] An Act to make provision for imposition of value added tax on goods and service WHEREAS it is expedient to make provision for imposition of value added tax, It is hereby enacted as follows:1. Short title and commencement.(1) This Act may be called the Value Added Tax Act, 1991 (2) In this Act,(a) sections 15, 16, 17, 18, 20, 21, 22 and 72 shall be deemed to have come into force on the 2nd June, 1991 corresponding to the 18 Jaistha, 1398 (BS); and (b) except the sections mentioned above, all other sections shall come into force on the 1st July 1991 corresponding to the 16 Ashar, 1398 (BS). 2. Definitions.In this Act, unless there is anything repugnant in the subject or context,(a) 'exempted' means goods and services exempt from payment of value added tax under this Act; (b) 'output tax' means value added tax imposed under this Act; (c) 'input' means (i) except labour, land, building, office equipment and transport, all raw materials (any gas and any material used as fuels), packaging materials, service, machinery and spare parts; (ii) in the case of trading, goods imported, purchased, acquired or otherwise procured in any way for sale, exchange or transfer in any other manner; (d) 'input tax' means value added tax paid on inputs imported by registered person or purchased by him from any other registered person;...
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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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...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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...Time and method of payment of VAT (Section 6): The provisions with regard to time and method of payment of VAT are as under: a) In case of imported goods, the method of payment of VAT will be the same as customs duty as per Customs Act. b) In the case of goods manufactured, produced, imported, purchased, or procured or collected in any manner by a registered person or by a person qualified for registration, VAT would be payable (on the taxable goods) at the time of the following which occurs first: • When goods are delivered or supplied; • When Chillan relating to the goods to be delivered or supplied is issued; • When 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...
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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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...[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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...Bangladesh vat first introduce by M saifur Rahman on 1991 July 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...
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...TRANSMITTAL 04th April 2007 Ms.Rehana Fowzia (Lecturer) Department of Business Administration Stamford University Bangladesh Subject: Submission of report on ‘Ascertain the position of cannons of taxation in tax system of Bangladesh’. Dear Ms.Rehana Fowzia madam We are pleased to submit this report on “‘Ascertain the position of cannons of taxation in tax system of Bangladesh’ for particular fulfillment of BBA Degree. This research program was taken by the help of ‘Three tax system of Bangladesh’, written by M.A. Akkas & ‘Income Tax’ written by Mahmud, Purohit, Bhattacharjee. Here is the report on the observational study of ‘Tax System Of Bangladesh’ you asked us to conduct last month. We honestly believe that this report will fulfill the requirements of the project report for BBA, which will help us a lot to gain sufficient knowledge about the ‘Tax System Of Bangladesh’. We appreciate having this assignment. If you should need any assistance in interpreting this report or in implementing our recommendations, atuddin_mezbah@yahoo.com, Contact No. 01718330355 Sincerely, 01. Mezbah Uddin Ahamed BBA02707126 02. Subbir Ahmed BBA02707121 03. Md. Mahmud Hossain BBA02707154 04. Subroto Biswas BBA02707125 05. Shamol Kanti Sarkar BBA02707112 06. Md. Mahfujul Alam BBA02707153 Program: BBA, Batch: 27 (J), Stamford University Bangladesh. please contact us ACKNOWLEDGEMENT Education involves not only reading books and doing exercises...
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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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...Proceedings of the AABEA Biennial 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...
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...period of time, we enjoyed the study of tax system of Bangladesh in various aspect of tax. First of all, we are indebted to our guide teacher Ms.Rehana Frowzier Lecturer, Department of Business Administration, Stamford University Bangladesh. His views, suggestions save us from more difficulties. We are also grateful to our group members’ most valuable cooperation, inspiration and suggestions. EXECUTIVE SUMMARY This dissertation report highlights on our practical experience in different types and categories ‘Tax System’ especially Tax System Of Bangladesh. During our short working period, we tried to gather information from News Paper, web sites. But the NBR does not provide information in the web site directly and even it does not publish tax structure implement in Bangladesh. So, we take much information about tax in our personal concept and view of Tax System of Bangladesh. To complete this report, we have gained practical knowledge about various type of Tax System. For example, Tax System Of Bangladesh, canon of taxation and implementation the canon of Bangladesh in Tax System Of Bangladesh. In this way, we are getting knowledge not only the tax system but also the implementation of canon on tax system of Bangladesh. As, tax is an important part of our country development. so, day by day, people are getting more conscious and informed about tax. Object of this study We can gain knowledge about the tax system of Bangladesh by studying this topic. As following aspects of tax...
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...Introduction Value Added Tax is one of the most important sources of tax revenues in Bangladesh. Since its introduction in 1991, VAT is one of the most effective and efficient tools in resource mobilization. Value Added Tax has emerged as a principal instrument of taxing domestic consumption world wide during last four decades. It is now in operation in more than 130 Countries. Value added tax is a primary source of tax revenue in many European and other developed countries. Its importance is also increasing in the developing countries because of its effectiveness in mobilizing local resources. VAT proves to be an efficient tool for revenue collection; its performance, therefore, has direct impact on fiscal mobilization, macroeconomic stability, and development. The basic advantages of Value Added Tax can be stated as its neutrality, tranparency, certainty and self policing mechanism. Customs is an Authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, personal effects and hazardous items in and out of a country. Depending on local legislation and regulations, the import and export of some goods may be restricted or forbidden, and the customs agency enforces these rules. Customs duty synonyms of tariff and involves a tax on commodities entering and leaving the country. In Bangladesh the levy and chargeability of customs duty are governed by the Customs Act 1969. Objective...
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