axation In Bangladesh (Projeact for NSU

students) ACT-322 NSU

Posted on October 27, 2012




Taxation
One of the major sources of public revenue to meet a countrys revenue and development
expenditures with a view to accomplishing some economic and social objectives, such as
redistribution of income, price stabilization and discouraging harmful consumption. It
supplements other sources of public finance such as issuance of currency notes and coins,
charging for public goods and services and borrowings. The term tax has been derived from the
French word taxe and etymologically, the Latin word taxare is related to the term tax, which
means to charge. Tax is a contribution exacted by the state. It is a no penal but compulsory
and unrequited transfer of resources from the private to the public sector, levied on the basis of
predetermined criteria.
According to Article 152(1) of the Constitution of Bangladesh, taxation includes the imposition
of any tax, rate, duty or impost, whether general, local or special, and tax shall be construed
accordingly. Rate is a local tax imposed by local government on its residents or the property
owners of the locality, a duty is a tax levied on a commodity, and an impost is a tax imposed for
an entry into a country. Under the provision of article 83 of the Constitution, no tax shall be
levied or collected except by or under the authority of an Act of Parliament. The imposition,
regulation, alteration, remission or repeal of any tax is dealt with by the Money Bill, but except
in case of reduction or abolition of any tax, the Money Bill cannot be introduced in the
Parliament without the Presidents recommendation.
History of tax at Bangladesh
Bangladesh inherited a system of taxation from its past British and Pakistani rulers. The system,
however, developed on the basis of generally accepted canons and there had been efforts towards
rationalizing the tax administration for optimizing revenue collection, reducing tax evasion and
preventing revenue leakage through system loss. To develop manpower for efficient tax
administration, the government runs two training academies BCS (Tax) Academy at dhaka for
direct tax training and Customs, Excise and Value Added Tax Training Academy at chittagong
for indirect tax training. The national board of revenue (NBR) is the apex tax authority of
Bangladesh and it collects around 93% of total taxes or 76% of total public revenues. The NBR
portion of total taxes includes customs duty, value added tax (VAT), supplementary duty (SD),
excise duty, income tax, foreign travel tax, electricity duty, wealth tax (collected as a surcharge
of income tax since fiscal year 1999-2000), turnover tax (TT), air ticket tax, advertisement tax,
gift tax and miscellaneous insignificant taxes. Other taxes (amounting to around 7% of total
taxes or 5% of total revenues) are often referred to as non-NBR portion of tax revenue. These
taxes include narcotics duty (collected by the Department of Narcotics Control, Ministry of
Home Affairs), land revenue (administered by the Ministry of Land and collected at local Tahsil
offices numbered on average, one in every two Union Parishads), non-judicial stamp (collected
under the Ministry of Finance), registration fee (collected by the Registration Directorate of the
Ministry of Law, Justice and Parliamentary Affairs) and motor vehicle tax (collected under the
Ministry of Communication).
Taxes are the major source of mobilizing internal resources of an economy.
Bangladesh revenue structure has been burdened by taxes from indirect sources for long time and
usually characterized by heavy import and excise duties. To cope with the challenge due to
globalization, government of many such countries has to cut down such duties and levies. It
seems that government might have to collect more money either through VAT (Value Added
Tax) or from direct taxes. In Bangladesh VAT introduced in 1991 by replacing the sales taxes is
still known as the vital reform in Bangladesh revenue structure. The remaining potential sector is
the income taxes sharing almost all taxes coming through direct sources. In Bangladesh having a
population of about 133 million, the number of registered taxpayers is only 1.25 million2 (which
is only 0.94 percent of the total population). Tax base is too narrow and the tax law is full of
exemptions and allowances. Agriculture sector provides employment for around 60 percent of
the population contributes only 25 percent of GDP and virtually pays little in the form of income
tax. There is always a controversy whether this sector is extra protected or not and if yes to
continue for how long. There are many affluent people lying in the category of agricultural
income and more such people avoiding taxes showing their entire income as a means of
agriculture. It is widely known that very few people even among the registered taxpayers pay any
tax in the form of income taxes in Bangladesh. Major share of income taxes come from the
corporate sector and there is always an uneasy feeling having its higher rates. It has been said
that, about 100 foreign investors pay 60 percent of the total revenue to the exchequer in
Bangladesh. Taxes imposed are usually in progressive rates and maximum collection is done at
source under withholding tax system. In Bangladesh, income tax for government employees is
deemed paid by the employer that is by the government, considering the fact that they are
underpaid. However, in case of private sectors, such payments are considered income, which
creates additional tax burden for the employee of the private firms. This is discriminatory and
obviously encourages employees of private firms to avoid or evade taxes. So, in reality very few
people share the burden of income taxes in Bangladesh and thus it is a real problem for the
government to distribute the tax incidence in a fair manner. Thus such a study is very important
for designing the tax structure of Bangladesh in the light of the overall objectives of the
development program of the country.
Tax is Imposed in the Assessment Year on the Basis of Income Year
Income year:
Income year is the year when the income is earned
Assessment Year:
The Assessment is a period of 12 month just following he income year


Tax Incentives
In accordance with Income Tax Ordinance, Income Tax Rules and various SRO issued from time
to time under the said ordinance/rules. Just mentioned tabulations shall articulate of particulars of
such incentives:-
a) Under part A of sixth schedule: (Income totally exempt from tax)
1. Income from house property held under a trust or other legal obligation wholly for religious
or charitable purpose (Para-1)
2. Any income derived from operation of micro credit by a NGO. (Para-2)
3. Income of religious or charitable institutions derived from voluntary contributions. (Para-2)
4. Income of a local government. (Para-2)
5. Any special allowances, benefits, or perquisites granted to meet expenses incurred for
official duties. (Part-5)
6. Income received by trustees on behalf of a recognized provided fund, an approved
superannuation fund and an approved gratuity fund. (Para-6)
7. Remuneration of Ambassadors etc. of Embassies of foreign states and their non-
Bangladesh employees. (Para-7)
8. Any pension due to or received by an assesses. (Part-8)
9. Interest on any securities of the Government received by an individual assesses up to Tk.
5,000/-. (Para-12)
10. Interest on debentures approved by the Securities and Exchange Commission received by
an assesses not being a company up to Tk. 20,000/- (Interest on debentures together with on
securities shall not exceed Tk. 20,000/-). (Para-13)
11. Salary received by or due of any person who is neither a citizen of Bangladesh nor was
resident in Bangladesh in any of the four years immediately preceding the year in which he
arrived in Bangladesh for a period not exceeding three years from the date of his arrival in
Bangladesh, if such salary is received as a technician under a contract of service to be approved
by the Board. This exemption will continue for another five years if the concerned technician
continues to be employed by the same employer and tax on the salary of such technician is
payable by the employer. (Para 15 & 16)
12. Any income received by an assesses in respect of any share of income out of the capital
gains on which tax has been paid by the firm of which the assessee is a partner. (Para- 18)
13. Any sum received by an assesses as a member of a Hindu undivided family where such
sum has been paid out of the income of the family. (Para-19)
14. Any income of an assesses representing payment as gratuity. (Para-20)
15. Any payment from provident fund to which PF Act. 1925 applies or from a recognized
provided fund, an approved superannuation fund or a workers profit participation fund. (Para-
21)
16. Any income from dividend for which dividend distribution tax is payable by the company
u/s 16D. (Para-22)
17. Any income from dividend of a mutual fund or a unit fund where such dividend does not
exceed Tk. 25,000/-. (Para-22A)
18. Interest on securities receivable by an assesses on any security of the Govt. which is issued
with the condition that the interest thereon shall not be liable to tax. (Para-24)
19. Any sum representing interest credited on the accumulated balance of an employee in a
recognized provided fund. (Para-25)
20. Any amount received by a Govt. employee or an employee of autonomous or semi
autonomous body including their units or enterprise at the time of voluntary retirement in
accordance with any scheme approved by the Govt. in this behalf. (Para-26)
21. Income of an indigenous Hillman being individual derived solely from economic activities
undertaken within the hill districts of Rangmati, Banderban and Khagrachari (Para-27)
22. 50% of the income of an assesses (other than non-Bangladesh company) attributable to
export sale (Para- 28)
23. Agricultural income not exceeding Tk. 50,000/- of an assessee being individual whose only
source of income is Agriculture. (Para-29)
24. Any income of the mutual fund of the company issuing such mutual fund (Para-30)
25. Income from capital gains from transfer of machinery or plant used for the purpose of
business or profession (Para- 31A).
26. Income on savings certificate is exempted up to Tk. 25,000/- where there is no deduction of
tax at source (Para- 31B).
b) Under part-B of sixth schedule. (Investment Allowances for resident assessee)
An assessee shall be entitled to 15% tax credit from the amount of tax payable on his total
income applicable on following admissible investment allowances:-
1. Life insurance premium for self, spouse or minor children (Para 1 & 2)
2. Contributions by the salaried person to deferred annuity (Para-3)
3. Contribution to any provident fund to which provident Fund Act. 1925 applies (Para-4)
4. Contribution to a Recognized provident fund. (Para-5)
5. Self contribution to approved superannuation fund (Para-6)
6. Investment in the new stocks or shares of public limited company listed with a stock
exchange (Para-8)
7. Investment in the new debenture or debenture stocks issued by approved companies (Para-
9)
8. Savings certificate unit certificate mutual fund certificates development bounds, shares and
such other Government securities as the Board may specify in this behalf (Para- 10)
9. Contribution to any DPS approved by the Govt. (Para- 11)
10. Donation to approved charitable hospital established outside city corporation area. (Para-
11A)
11. Donation to approved organization set up for the welfare of the retarded people (Para-
11B)
12. Contribution to any Zakat Fund (Para- 13)
13. Contribution to a benevolent fund and group insurance premium if such fund or scheme of
group insurance is approved by NBR (Para-17).
14. Donation to any socio economic or cultural development institution established in
Bangladesh by Aga Khan Development Network (Para 21)
C. Under different sections of I.T. Ordinance 1984
1. Any investment made by an assessee, being an individual firm, association of persons or a
private limited company between 01.07.2002 to 30.06.2005 in any trade, commercial or
industrial venture, engaged in production of goods or services shall be exempted from tax and no
question as to the source of such investment shall be raised. (Section 19AAA).
2. Capital gains arising from the sale of capital assets being used for business or profession if
invested in the purchase of the new capital asset for the purpose of business or profession within
one year before or after that sale (Sec 5)
3. Capital gains arising from the sale of govt. securities and stocks and share of public
companies listed with a stock exchange (Sec. 32 (7).
4. Capital gains arising from the transfer of capital asset of a firm to a new company
registered under the companies act. if the whole amount of the capital gain is invested in the
equity of the said company by the partners of the said firm. (sec 32 (1)
5. Accelerated depreciation for newly set-up industries owned by Bangaldeshi companies @
80% to 100% depending on its location in the first year in respect of machinery and plant not
previously used in Bangladesh. (para-7 of the third schedule). In addition investment allowance
@ 20% to 25% in respect of plant & machinery [Sec. 29 (1) (x)]. Accelerated depreciation &
investment allowance are in lieu of tax holiday u/s 45.46 & 46A.
6. Income of co-operative societies (a) carrying on business of banking (b) engaged in (i)
agriculture rural credit (ii) cottage industry (iii) processing and marketing etc. of agricultural
produce of member (iv) supply of agricultural inputs to members (sec. 47 (1) (a) & 47 (1) (b)
7. Tax holiday for newly set-up industrial undertakings, physical infrastructure facilities and
tourist industries for 5/7 years depending on location (sec.46A)
8. Concessionary rate of tax on capital gains @ 15% for sale of capital assets after five year
of its acquisition. For companies tax rate is 25% fixed (Para 2 of the second schedule)
9. Concessionary rate of tax on income from winnings from lotteries, cross word puzzles, card
games 20% (Para 3 of the second schedule)
2. Incentive under I.T. Rules 1984 .
For salaried persons: House rent allowances up to Tk. 15,000/- per months or 50 of the basic pay
which ever is less (rule 33A) conveyance allowances received in cash up to Tk. 24,000/- (rule
33C); The amount actually spent with respect to medial allowances (rule 331)
3. Incentives under different S.R.Os :
1. Salary or honorarium of the Prime Minister. Ministers state Minister and Deputy Minister,
Member of Parliament, Judges of the Bangladesh supreme curt, Deputy Chairman and Member
of the planning commission and member of the law committee. (SRO No. 440-L/76 dt 18.12.76
read with SRO No. 297-L/78 dt. 01.11.78)
2.Interest on money borrowed from abroad by Government, statutory bodies and industrial
undertaking under certain condition (SRO 417A-/76 Date 29.11.76).
3. The difference between the official exchange rate and market rate of foreign currencies
derived from encashment of remittance through official channel by Bangladeshi residing abroad
(SRO 160/78 dt. 1.7.78).
4. a) Interest on deposits in the post office savings bank.
b) The yield of post office saving certificate without any limit.
c) Scholarship to meet the cost of education: (SRO 297-L/80 dt. 31.12.80)
5. The interest and principal on purchase of Wage Earners Development Bonds (SRO160-L 81
dt. 25.05.81)
6. Monetary award granted from the cultural Heritage fund for outstanding contribution in the
field of art and culture of the country (SRO 39-L/82 dt. 19.01.82)
7. Royalties for technical know-how fees received by any foreign collaboration, firm company
and expert (SRO 227-L/82 dt 20.06.82)
8. The interest accruing on non-resident foreing currency deposit account (SRO 415-L/82 dt.
13.01.82).
9. Interest payable by the lasing company approved by the NBR on moneys borrowed by ii from
source outside Bangladesh (SRO 403-L/85 dt. 10.09.85
10. Dividend paid by leasing company approved by NBR to the foreign shareholders of such
company (SRO 404-L/85 dt. 10.09.85)
11. Exemption of Income of such pioneering industry as may be specified by the Board for ten
years (SRO 266-L/86 dt. 01.07.85
12. 50% of the tax attributable to export sales after the expiry of the tax exemption period of 5/10
year under SRO 181-1.81 dt. 12.5.81 or SRO 266-L/86 dt. 01.07.86 (SRO 267-L/86 dt. 01.07.86)
13. Dividend income o non resident shareholders during tax examption period of an industry set-
up in Export processing zone and also after the expiry of tax exemption period if the dividend
incomes is re-invested in the same project. (SRO 268-L/86dt. 01.07.86)
14. Accelerated depreciation to the extent of 100 % of the cost of machinery in respect of hitech
electronic industry as may be specified by the Board and setup in export processing zone within
the tax exemption period (SRO 289-L/89 dt. 17.08.89)
15. Income from industrial undertaking set up in Export Processing Zone for ten years form the
date of commercial production (SRO 289-L/89 dt. 17.08.89)
16. Income from industrial undertaking owned by a company and governed by the provision of
Foreign Private Investment (Promotion & Protection) Act, 1980 as may be approved by the NBR
and for such period as may be permitted by the Govt. (SRO 358-L/86 dt. 10.09.86)
17. Income of the Welfare Fund established under any law for the time being in force for the
welfare of the Tea Garden Workers. (SRO 239-L/93 dt. 18.10.93)
18. Income of the investment companies run on commercial basis and established in Bangladesh
under an agreement between G.O.B and may foreign Government or investment organization
formed by the foreign Government for a period mentioned in he Agreement (SRO 32-L/90 dt
24.04.90)
19. Any amount of contribution to prime ministers relief fund (SRO 125-L/91 dt 05.05.91)
20. Contribution up to 5,00,000/- (five lakh) to the organizer of any national or international
sports competition to be organized and help in Bangladesh. (SRO 202-L/91 dt. 01.07.91)
21. Income out of grants allowed by the government in the form of 15 years special Treasury
bond to nationalized commercial banks and Rupali Bank Ltd. (SRO 257-L/92 dt. 28.11.92)
22. Income of the listed organizations runs by Senakallyan Sangstha (SRO 208-L/93 dt. 18.10.93
and SRO 216-L/216-4/2003 dt. 19.07.2003)
23. Interest on DPS run by a commercial bank and approved by the Government (SRO 54-L/95
dt. 04.04.95)
24. Income of such firm which is derived by it from the exercise of a profession and if such
income depend wholly or mainly on personal qualification of its partners and its partners are
prevented by law to from a company SRO 150-L/95 dt. 28.08.95 SRO- 183-L/98 dt. 19.08.98
and SRO 181-L/99 dt. 10.07.99)
25. Income of a stock exchange in Bangladesh (SRO 102-L/96 dt. 18.08.96)
26. Income out of investments in Bangladesh made by such Development finance organization as
is established under an act of British Parliament and also finance by the British Government and
having no partner and no registered under the companies act. (SRO 166-L/97, dt. 02.07.97)
27. Salary or honorarium of the person having status of Minister, State Minister, Deputy
Minister/Deputy Chairman and Members of the planning commission. Such salary or
honorarium is includible in the total income for rate purposes. (SRO No. 313-L/86 dt. 24.07.86)
28. Income attribution to export sales of handicrafts. Such income is not includible in assessees
total income (SRO No. 191-L/97 dt. 19.08.97 in cancellation of SRO No. 313-L/86 dt. 24.07.86)
29. Salaries and allowance of expatriate personal employed in a foreign aided project established
under an agreement between the Bangladesh Government foreign Government provided the
expatriate personal are the citizens of such foreign country. (SRO 207-L/97 dt. 08.09.97)
30. Income of private sector power sector Generation Company for 15 years from the date of
commercial production. Income of expatriate personnel working in such company for three years
from the date of his arrival; interest on foreign loans received by such company; Royalties
technical know-how fees and technical assistance fees payable by such company and capital gain
on transfer of shares of such company. These exemptions will be available subject to the
fulfillment of conditions laid down n the private sector power generation policy of Bangladesh
(SRO No 14-l?99, dt. 03.02.97)
31. Tax on tax if the amount of tax payable on salary is paid by the employer (SRO No. 182-
L/99 dt. 01.07.99)
32. Income of newly established hospital for a period of five years subject to the fulfilment of
certain condition. (SRO No. 182-L/99 dt. 07.07.99)
33. Fixed amount of tax on income from passenger launches, cargo, coaster and dumb barges
paying in inland water ways. (SRO No. 176-L/2002 dt. 03.07.2002)
34. Fixed amount of tax on income from bus, minibus, coaster, prime mover, truck, tank lorries,
pickup van, human hauler, maxi and auto rickshaw carrying goods (SRO No. 221-L/99 dt.
27.07.99) in cancellation of SRO No 199-L/99 dt. 03.09.98) (amended vide SRO No. 200-
L/2000 dt. 03.07.2000)
35. Interest on Bangladesh Shilpa Unnayan Bond issued by Nationalized Commercial Banks up
to Tk. 25,000//- If the interest exceeds Tk. 25,000/- tax will be deducted @ 10% on the whole of
interest and that will be final settlement of tax liability (SRO No. 154-L/99 dt. 10.06.99)
36. 50% of the tax attributable to contribution up to certain limit in the approved sports
organization (SRO 337-L/99 dt. 17.11.99)
37. Income of the financial institution engaged in prodding loan for house building for a period
for five years from 1
st
July, 2000 (SRO 128-L/2000 dt. 11.05.2000)
38. Income of the District sport Association, Divisional Sports Association, National sport
Association and National sport council (SRO No. 298-L/200 dt. 02.09.2000)
39. Concession rate of tax on income of local authority @ 25% (SRO 169-L/ 2001 dt.
28.06.2001)
40. Income of agro processing industry in also exemption from 01.07.2002 to 30.06.2006v
(SRO No. 175-L/2002, dt. 03.07.2002 and SRO No. 214-L/2003 dt. 19.07.2003)
41. Reduced rate of tax @ 20% in case of newly set up industry under certain condition. (SRO
No. 177- L/2002 dt. 03.07.2002)
42. The income of any university, or any other educational institution which is not operated
commercially and also medical college, dental college, engineering college, and institution
imparting education on information technology. (SRO No. 178-2/2002 dt. 03.07.2002)
43. Reduced rate of tax @ 10% of companies engaged in ready made garments industries on
exports sale from 01.07.2003 to 30.06.2006 SRO No. 217-L/2003 dt. 19.07.2003)
44. Reduced rate of tax @ 20% of companies engaged in textiles industries from 01.07.2003 to
30.06.2006 (SRO No. 218-L/2003 dt 19.07.2003).







Who is entitled to a Tax Holiday?
Tax holiday is allowed to industries subject to the relevant rules and procedures set by the
National Board of Revenue (NBR) for the following period according to the location of the
establishment.
In Dhaka and Chittagong Divisions (excluding 3 hill districts): 5 years. In other divisions
(including 3 hill districts of Chittagong Division): 7 years.
The period of such tax holiday will be calculated from the month of commencement of
commercial production. The eligibility of tax holiday to be determined by the NBR and the time
of the commencement of commercial production is certified by the respective sponsoring
agencies. The industrial establishment should be registered under the companies Act. 1994.
Tax holiday facility can be availed by industries coming into commercial production within 30
June 2000 A.D.
What are the other tax incentives in Bangladesh?
Other tax incentives: Exemption of tax on interest of foreign loan. Exemption of tax on
Royalty/Technical know-how. Tax exemption on capital gains. Avoidance of double taxation.
Liberal investment allowance for tax assessment.
An accelerated depreciation instead of a tax holiday of a tax holiday is allowed at the rate of 80
per cent of the actual cost of the machinery or plant from the year the plant starts production and
20 per cent for the following year provided the industry is located within a developed area. the
depreciation is 10 per cent if the industry is set up in a location considered less than a developed
area.
Tax Structure in Bangladesh
Total taxes in Bangladesh are divided into direct and indirect taxes. Direct taxes in Bangladesh
consist of taxes on income (income tax, corporation tax, agricultural income tax) and taxes on
property (wealth tax, gift tax, estate duty, capital gains tax, urban property tax, house rent, land
revenue, registration and non-judicial stamp).
Table 2 shows that the direct taxes in general accounted for less than a fifth of the total tax
revenue of the country in the recent years and the rest is accounted for by indirect taxes.
The first half of the Table 2 shows that the share of taxes on domestic goods and services
hovered around a quarter of total tax revenue. Excise taxes declined very sharply as taken over
by VAT since early nineties. Import duty has been declined throughout the last decade though
still maintaining major share of taxes on foreign trade and more than 30 percent of the total tax
revenue. VAT at import stage earning an average of 20 percent tax revenue however the total
revenue from VAT is increasing steadily which seems the only positive sign for the country. The
share of income taxes contributes to the entire direct taxes. The collection from income taxes is
increasing for last few years but still insignificant compared to the total tax revenue. The later
half of the Table 2 is adopted from the study of Ghafur and Chowdhury (1987) and Chowdhury
(1994). The scenario is more alike with nineties in sharing indirect taxes for the tax revenue.
However share of direct taxes has averaged a little improvement but not attained expected
consistency as needed. Thus to combat with the upcoming challenges of globalization and
expected rapid shrinking of tariffs, it seems now to overhaul the tax structure and to concentrate
more on widening the tax base for VAT and income taxes.
Figure 1 depicts a pictorial sketch analyzing a time series data for major taxes in
Bangladesh. It shows that income tax first started increasing in early nineties but sharply
declined in the middle and still trying to get its way back. A major reform of tax administration
in the history of Bangladesh happened that time and a democratic government took over the
paddle of the economy after a long military rule. No study has been done to measure the effect of
democratic environment on the revenue administration and governance for Bangladesh; however
it could be inferred that the sudden increase was due to the result of a transition towards good
governance and major extension of income tax department. This analysis of revenue structure of
Bangladesh shows that indirect taxes contribute the lions share in the overall revenue earnings
and in fact, it accounts for more than sixty percent of the total revenue receipts. In other words,
indirect taxes are still the primary source of generating internal resources for Bangladesh.

Types of Taxpayers in Bangladesh
Taxpayers in Bangladesh can be categorized into three main groups. Table 3 shows the scenario
in detail. The elite group consists of corporate taxpayers those are about 3.02 percent of the total
taxpayers. The next group consists of wage earners or salaried taxpayers and shares about 18.81
percent. The largest and the last group consists taxpayers of remaining all others and mainly
those who have income from business and profession and shares about 78.17 percent.

4.2 Shares of Income Taxes
Corporate sector though has a poor number of taxpayers paying almost two third of total income
taxes. Since FY 1990/91 to FY 1999/2000 it has contributed an average of 65.48 percent of total
taxes from direct sources. Again about 60 percent of the corporate income taxes come from a
small number of foreign companies in Bangladesh. Figure 2 shows the continuing trend of
income tax collection from the two major sectors for the period of FY 1990/91 FY1999/2000.



CONCLUSIONS
Attaining an optimal income tax system is a difficult and unenviable task, but nevertheless
critical for revenue generation required for accelerating growth and to improve the quality of life
of the citizens. A long-term sustainable solution to enhance transparency, promote growth,
improve tax compliance and thus to increase tax to GDP ratio is a much desirable issue in the
context of Bangladesh. Historically Bangladeshs direct taxes have been heavily skewed against
salary-earners and corporate sector. Small business, services and farm incomes manage to slip
through the tax net effortlessly. This study unveils the present scenario of tax incidence among
different income groups, in case of personal and corporation income taxes in Bangladesh tax
system. The findings and policy recommendations presented here could be important to carry on
future tax reforms and to make Bangladesh tax structure more broad based, revenue buoyant and
equitable.
References:

Auerbach, A. J., J. Gokhale, and L. J. Kotlikoff (1991) Generational Accounts: A
Meaningful Alternative to Deficit Accounting, Tax Policy and the Economy
5: pp55-110
Bangladesh, The Two-Year Plan of Bangladesh, 1978-1980, Planning Commission,
Government of Bangladesh.
Bangladesh, Final Report of the Taxation Inquiry Commission, April 1979, Part One,
Ministry of Finance, Internal Resources Division, Government of the Peoples
Republic of Bangladesh.
Bangladesh, Revenue Reforms Commission Report, The Daily Star, January 14, 2004
Bangladesh, Annual Reports, National Board of Revenue (NBR), 1999-2000,
Bangladesh, Income Tax Manual, Part I, The Income Tax Ordinance, 1984 (XXXVI
of 1984) Government of the Peoples Republic of Bangladesh, Published by
Bangladesh Government Press, Dhaka, 1999
Bangladesh, Economic Review 2002, Published by Economic Advisors Wing, Finance
Division, Ministry of Finance, Government of Bangladesh.
Bird, R.M. (1974) Taxing Agricultural Land in Developing Countries, Harvard
University Press, Cambridge, Massachusetts, USA
Chowdhury, O. H. (1994) Incidence of Indirect Taxation in Bangladesh: 1984/85,
Research Monograph: 16, Bangladesh Institute of Development Studies
(BIDS), Dhaka
Economist, Chinas Civil Service - The Strategy Behind Pay Rise:A Case in China,
The Economist, May 25, 2002.
Feldstein, Martin (1995)The Effect of Marginal Tax Rates on Taxable Income: A
Panel Study of the 1986 Tax Reform Act The Journal of Political Economy,
Vol.103, No.3, pp.551-572.
Formby, J. P., Smith, W. J. and Sykes, D.(1986) Intersecting Tax Concentration
Curves and the Measurement of Tax Progressivity : A Comment National
Tax Journal, 39(1), pp.115-118
Fullerton, D. and Gilbert E. Metcalf (2002) Tax Incidence, NBER working paper
series, Working paper no 8829, Cambridge, MA 02138
Ghafur, A. and Chowdhury, O. H. (1987): Financing Public Sector Development
Expenditure in Bangladesh Asian Development Bank, Manila, Philippines.
Hussain, S. (1999) Taxation in Bangladesh: Measures for Improving the Income-Tax
System (unpublished)
India, The Kelkar Tax Plan, and Consultation Paper: Recommendations on Direct
Taxes 2000, Ministry of Finance, Government of India.
James, S. and C. Nobes (2000) The Economics of Taxation: principles, Policy and
Practices, 7th Edition, Prentice Hall, 2000/2001
Kotlikoff, L.J. and Summers, L.H. (1987) Tax Incidence, Handbook of Public
Economics, Chapter 16, pp 1043 1092, edited by A.J. Auerbach and M.
Fledstein (North Holland)
McLure, C.E. Jr. (1988) Lessons for LDCs of US Income Tax System, Stanford -
Hoover Institution, pp. 1-63
Rahman, S. H. and Shilpi, F.H. (1996) A Macro econometric Model of the
Bangladesh Economy: Model, Estimation, Validation and Policy Simulation,
Bangladesh Institute of Development Studies, Dhaka.
Sarker, T.K. and Kitamura, Y. (2002) Technical Assistance in Fiscal Policy and Tax
Administration in Developing Countries: The State of Nature in Bangladesh
Asia-Pacific Tax Bulletin, Vol. 8, No. 9 pp 278 288.
Slemrod, J.& Bakija. J. (1998) Taxing Ourselves, A Citizens Guide to the Great
Debate over Tax Reform, Second Edition, MIT Press, Cambridge,
Massachusetts 02142
Waresi, S.A. (1998) Tax Holiday as a Fiscal Incentive in Bangladesh in Tax
Chronicle, Special Edition, Vol.3, Issue 5, Dhaka, Bangladesh
World Bank, Governance and Public Sector, Tax Policy and Administration Home
Page, http://www1.worldbank.org/publicsector/tax/
I t is shared copy, got it from my friend. I f you
think, it is unethical to share, then I will
remove it. J ust make a inbox me on Fackbook
About these ads
Rate this:






1 Vote
Share this:
Facebook5
Twitter
Email

Related
Load Shedding in Bangladesh: Is it possible to solve!!!In "Bangladesh's Problems and Solution"
Inventory Valuation & Costing practices in Bangladesh (Shared) NSU ACT-330In "Education"
Book Piracy (reasearch topic for University Student) NSU ENG-105In "Education"
Posted in Education | Tagged ACT 322 MBR, ACT-322, North South University Taxation
Projeact, NSU, Projeact Report, Tax Bangladesh, Taxation in Bangladesh | Leave a comment |
Post navigation
Book Piracy (reasearch topic for University Student) NSU ENG-105
Inventory Valuation & Costing practices in Bangladesh (Shared) NSU ACT-330
Leave a Reply

Search Engine


Subscribe Me on Facebook
October 2012
S S M T W T F
Apr
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31
Back Behind
PSN ID list for Bangladesi Playstation Gamers
Bangladeshi Teenagers in the Cross Culture
Pigeon Diseases & Treatments (Bangladesh Shared)
A body corporation has no domicile Project Report NSU LAW 200
CSR of BP (British Petrolium) Project paper NSU BUS-401
Blog Stats
10,667 hits
Archives
Top Rated
Posts | Pages | Comments
All | Today | This Week | This Month
Gaming Group For Bangladeshi Gamers (PS3, XBOX, PC etc)
5/5 (4 votes)
Process of reducing corruption in Bangladesh
5/5 (2 votes)
Pages
About Myself
Blog Archieve
Suggestion
Categories
Blog at WordPress.com. The Mixfolio Theme.
Follow
Follow Knowlegde Makes You Educated but not Education
Get every new post delivered to your Inbox.
Join 70 other followers
Powered by WordPress.com