Taxation and economic development in Bangladesh with special reference to indirect taxation. by Sofia Hasna Jahan Ali

Cover of: Taxation and economic development in Bangladesh with special reference to indirect taxation. | Sofia Hasna Jahan Ali

Published by University of Manchester in Manchester .

Written in English

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Edition Notes

Manchester thesis (Ph.D.), Department of Economics.

Book details

ContributionsUniversity of Manchester. Department of Economics.
The Physical Object
Pagination343p.
Number of Pages343
ID Numbers
Open LibraryOL16572846M

Download Taxation and economic development in Bangladesh with special reference to indirect taxation.

Long-term macroeconomic stability as well as economic development of Bangladesh. This paper focuses on the impact of indirect taxation on GDP and demonstrates the influence that taxation has on the tax paying individual and business firms irrespective of economic : Aoulad Hosen.

It examines the relationship between the growth rate of Gross Domestic Product (GDP) and the indirect-tax for the policy issues regarding long-term macroeconomic stability as well as economic development of Bangladesh.

This paper focuses on the impact of indirect taxation on GDP and demonstrates the influence that taxation has on the tax paying individual and business firms irrespective of economic : Aoulad Hosen. Bangladesh to the extent it is attributable to the value of any assets in Bangladesh.

Capital gains from the sale or transfer of shares by the investing power generation companies (other than coal based and coal based) shall be exempt from Size: KB. It is a progressive tax system.

Bangladesh Income tax is imposed on the basis of ability to pay. The more a taxpayer earns the more tax he should pay. This is the basic principle of charging income tax in Bangladesh. The tax system aims at ensuring equity and social justice.

Tax rates in Bangladesh also differs between male and female individuals. The Bangladesh Development StudiesDecemberNo.4 Tax Structure of Bangladesh: An Overview by Omar Haider Chowdhury* mahabub hossain* Taxes account for more than 80 per cent of total internal resources generated in Bangladesh.

Indirect taxes contribute more than 75 per cent towards total tax yield and taxes on import more than is a platform for academics to share research papers. Publications. Bangladesh Tax Guide / The Bangladesh PKF Tax Guide / provides details about tax within Bangladesh and contact details for local tax specialists in local PKF firms who will be able to provide taxation advice to help your business.

The tax effort index for both direct and indirect taxes is belowimplying that Bangladesh has the potential for raising revenue collection from both direct and indirect Taxation and economic development in Bangladesh with special reference to indirect taxation.

book. In terms of tax buoyancy, Bangladesh ranks the second highest among the sample countries, with a tax buoyancy ratiomeaning that tax revenue is quite. THE CHALLENGES OF TAX COLLECTION IN DEVELOPING ECONOMIES (WITH SPECIAL REFERENCE TO INDIA) by PRAMOD KUMAR RAI (Under the Direction of Prof.

Walter Hellerstein) ABSTRACT This paper gives an overview of the Indian tax system and discusses the challenges in tax collection faced by developing economies using India as a model. The objective of this study is to investigate the impact of taxation on economic development of Nigeria proxy by the gross domestic product (GDP).The study further looked at the relation between.

Over 68 percent of the total tax in Bangladesh came from indirect taxes in fiscal yearhe said. “Indirect taxation imposes a greater relative burden on the poor than on the rich.”. The relationship between taxes and economic growth: Evidence from Serbia and Croatia in order to assess the general impact of indirect taxation on production capacity of the undertakings.

The economic progress & development of Bangladesh, a role model, are visible now. Taxation proposals in Bangladesh budget for J in Budget, Governance, Growth, (VAT) is a modern indirect tax system.

It is the single highest contributor to the NBR tax revenue. Reform initiatives, positive mindset of the taxpayers and. Other indirect taxation.

To increase the supplementary duty (SD) for the low segment of local and international brand cigarettes to 52% and 55% respectively. To impose a 25% custom duty and % SD on e-cigarettes and their refill pack. To impose 10% SD at the local supply stage of fast foods. Bangladesh - An agenda for tax reform (Vol.

3): Direct taxation: policy and administration (English) Abstract. This report lays out a medium-to-long term agenda for reforming the tax system in Bangladesh into an elastic, efficient and equitable instrument of domestic resource mobilization.

It is evident from the results of both analyses that corporate taxation followed by personal income taxes and social security contribution are the most harmful for economic growth.

Concurrently, in case of the value added tax approximated by tax quota, the negative impact on economic growth was not confirmed, from which it can be concluded that tax quota, in this case as the indicator of taxation.

NBR is responsible for the formulation and continuous re-appraisal of tax-policies and tax-laws in Bangladesh. Negotiating tax treaties with foreign governments and participating in inter-ministerial deliberations on economic issues having a bearing on fiscal policies and tax administration are also NBR's responsibilities.

Andreoni, J., Erard, B., & Feinstein, J. Tax compliance. Journal of Economic Literature, – Atkinson, A. B., & Stiglitz, J. The design of. Tax is a financial charge imposed on individuals by state in different forms like direct tax paid directly by individuals, indirect tax collected by intermediaries and deposited to Government like sales tax.

Taxation plays an important role in the process of revenue generation and to run various activities in an economy. The study empirically demonstrates various factors involved in direct and.

TAXATION & DEVELOPING COUNTRIES- Training notes 3 Contributors and authors featured Francesca Bastagli is research fellow in social protection at the Overseas Development Institute; David Coady is deputy division chief of the Expenditure Policy Division at the Fiscal Affairs Department of the International Monetary Fund (IMF); Sanjeev Gupta is deputy director of the Fiscal Affairs Department.

Tax may not have direct benefit but indirectly it is benefited to the public at large. Economic and Social Functions of Taxation. Government is facing the following fiscal pressure in the 21st Century. The main objective of collection of taxes to spend for various economic and social activities and infrastructure development of the Size: 1MB.

Bangladesh Tax Profile Profile produced by KPMG highlighting cross-border business and investment tax issues. The guide has sections on corporate income tax, transfer pricing, indirect tax, personal taxation, and trade and customs.

Updated in September PKF Asia Pacific Tax Guide An Evaluation of the Tax System in Bangladesh Ahsan H. Mansur, Mohammad Yunus and Biplob Kumar Nandi Policy brief countries with similar levels of social and economic development.

Policy Findings Broadening the base of the income tax by eliminating special treatments would improve the horizontal equity of the tax, and. Taxation, imposition of compulsory levies on individuals or entities by governments. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well.

Learn more about taxation in this article. Role of Income Tax in Economic Development of Bangladesh Tax Holiday Scheme Industrial enterprise established within prescribed time limit in the prescribed area will be exempted from tax for certain period Upto 07 (seven) years To attract investment in some specific sector Investment allowance On the investment in new machineries @20% 25% if established in NBR specified areas.

The taxation of income and profits Indirect taxation Some simple guiding principles 4. The taxation of agriculture Distinctive features for taxation Some influences on tax incidence The balance between agriculture and other sectors Stiglitz, J.E. and Dasgupta, P.S. () ‘Differential taxation, public goods and economic efficiency’, Review of Economic Studies, vol.

38, pp. – CrossRef Google Scholar United Nations Industrial Development Organization (UNIDO) () Guidelines for Author: Christopher J. Heady. So we see that a society with some taxation that provides these services will have a much higher level of economic growth than a society with no taxation but no police force or the court system.

So an increase in taxes can lead to larger economic growth if it Author: Mike Moffatt. However, post-independence the newly-established Indian Government then soldered the system to propel the economic development of the country.

After this period, the Indian tax structure has been subject to a host of changes. Tax System in India: The tax system in India allows for two types of taxes—Direct and Indirect Tax. This paper analyzes the effects of taxes on economic activity in Pakistan. Economic activity is examined through real GDP, consumption and investment, and for each from the said proxies a different econometric model is developed for analysis.

Tax to GDP ratio for growth model, sales tax for consumption model and income tax for investment model are used. Proportional Taxation []. Proportional taxation means that MRT = ART, so if a low income earner is taxed at 20%, so is a higher income proportion of tax paid is always the same, though in absolute terms it goes up the higher your income.

Progressive Taxation []. Progressive taxation means that MRT > ART (with MRT and ART > 0). For example, in the UK there are three rates of income. Both taxes are essential to promote economic growth, fill employment and economic stability.

Direct and indirect taxes should side by side & balance each other. However in developing countries, direct taxation has limited scope and hence indirect taxation plays a more significant role. In Bangladesh percentage of personal tax collection with GDP is % compared to India’s percent, Thailand’s percent and Indonesia’s percent [5].

Among many types of taxes gift tax is a direct tax. Being an unpopular type of tax, tax payers don’t have Present scenario of gift tax in Bangladesh: contribution and prospect inAuthor: Md.

Rayhanul Islam, Nurul M Zayed. Tax System in Bangladesh: Efficiency and Fairness By Mohammad Shahid Ullah, @; + 1. TAX SYSTEM IN BANGLADESH Bangladesh, as an emerging developing country, is committed to augmenting revenue and achieving fiscal discipline with a view to increasing self-reliance.

The external environment influencing the tax performance of Bangladesh. Bangladesh, India, Pakistan, Sri Lanka and UAE.

These countries are in the process of reforming their tax systems for better and efficient collection of taxes. This report discusses the importance of indirect taxes and revenue collection, thresholds, tax rates, zero-rating, exemptions and various other areas of indirect tax administration along.

A recent study by the Policy Research Institute of Bangladesh (PRI) showed that the current tax to GDP ratio in Bangladesh is at roughly 10%, while the average tax to GDP ratio for Organisation for Economic Cooperation and Development (OECD) countries is 34%.

In some countries of Western Europe citizens pay over 40% of their income in taxes. The excessive tax burden on productive Roman citizens during the 4 th and 5 th centuries was a leading cause of the nation’s eventual economic collapse 5.

Early taxation was not limited to European and Mediterranean civilizations, ancient Chinese societies also levied taxes on their citizens. Taxation In - Free download Ebook, Handbook, Textbook, User Guide PDF files on the internet quickly and easily.

Business taxation Overview Residence Taxable income and rates Capital gains taxation Double taxation relief Anti-avoidance rules Administration Withholding taxes Dividends Interest Royalties Branch remittance tax Wage tax/social security contributions Indirect taxes Value added tax.

Economic growth and development programmes are geared towards raising the standard of living of the masses of a country through the improvement of their economic and social conditions.

Taxation in one way discourages, postpones or reduces consumption and encourages saving for private investments. the concept of stage- wise tax structure to development, which is conceived as a transition from reliance on indirect to a greater one on direct taxation.

The message of the book is that policy of the less developed countries is growth-oriented. This follows from the argument that for income to be distrib.The National Board of Revenue (NBR) is the apex authority for tax administration in Bangladesh.

It was established by the father of the nation Bangabandhu Sheikh Mujibur Rahman under .govern taxation, provide information and serve as reference material to our stakeholders This Edition comes in handy following several amendments in the Tax laws that are geared at widening the tax base.

It is therefore important that you get equipped with this ‘bank of tax .

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