Professional Documents
Culture Documents
Bangladesh
Submitted to:
Submitted by:
Md. Tunvir Islam
ID: 07204047
Sec: 001
The above definitions make it clear that taxes are compulsory contribution by
the taxpayer to the government.
Bangladesh personal income tax rates for assessment year 2010 - 2011 is
progressive up to 25%. Bangladesh Income Tax Rates for individuals other than
female taxpayers, senior taxpayers of 65 years and above and retarded taxpayers
Based on income Year 2010 2011
Bangladesh Income Tax Rates for female taxpayers, senior taxpayers of age 65
years and above Based on year 2010 - 2011
Time to submit income tax return: Unless the date is extended, by the 30th day
of September next following the income year.
Income Tax Return should be submitted by (whom):
- If total income of any female taxpayer, senior taxpayer of 65 years during the
income year exceeds Tk 1,80,000/-
- If total income of any retarded taxpayer during the income year exceeds Tk
2,00,000/-.
- If any person was assessed for tax during any of the 3 years immediately
preceding the income year.
- If any person runs a business or profession having trade license and operates a
bank account.
- Commissioner of Taxes,
- Inspectors of Taxes.
Tax deducted at source for the following cases is treated as final discharge of
tax liabilities. No additional tax is charged or refund is allowed in the following
cases:
- Import of goods
- Transfer of properties
- Export of manpower
- Auction purchase
- Courier business
Tax Holiday
Tax holiday is allowed for certain industrial undertaking, tourist industry and
physical infrastructure facility established between 1st July 2008 to 30th June
2011 in fulfilment of certain conditions.
Bangladesh Value Added Tax (VAT) Rates
- Value Added Tax (VAT) is imposed on goods and services at import stage,
manufacturing, wholesale and retails levels;
- A uniform VAT rate of 15% is applicable for both goods and services;
- 15% Value Added Tax (VAT) is applicable for all business or industrial units
with an annual turnover of Taka 2 million and above;
- Turnover tax at the rate of 4% is leviable where annual turnover is less than
BDT 2 million;
- Value Added Tax is applicable to all domestic products and services with some
exemptions;
- Value Added Tax (VAT) is payable at the time of supply of goods and services;
- Cottage industries (defined as a unit with an annual turnover of less than BDT
2 million and with a capital machinery valued up to BDT 300,000) are exempt
from Value Added Tax;
Amount Rate
On the next Tk. 10,00,000 of the value of all taxable gifts 10%
On the next Tk. 20,00,000 of the value of all taxable gifts 15%
Classification of Tax:
On the basis of tax rate
Progressive Tax
Proportional Tax
Regressive Tax
Digressive Tax
Direct Tax
Indirect Tax
Single Tax
Multiple Tax
TAX SYSTEM OF BANGLADESH
Major heads of tax-revenues of Bangladesh are as follows:
1. Income tax-Companies
2. Wealth Tax
3. Narcotics Duty
4. Land Revenue
5. Stamp duty-non-judicial
6. Registration
1. Customs Duties
2. Excise Duties
5. Taxes on Vehicles
6. Electricity Duties
7. Other Taxes and Duties (travel tax, turn over tax, etc.)
Major heads of non-tax revenues are as follows:
G. Economic Services
K. Capital Revenue
Canons of taxes:
The four canons of taxation as prescribed by Adam smith are the following:
1. Canon of equality:
The subjects of every state ought to contribute towards the support of the
government, as nearly as possible, in proportion to their respective abilities; that
is, in proportion to the revenue which they respectively enjoy under the
protection of the State. This cannon tries to observe the objective of economic
justice. It dictates that in absolute terms the richer should pay more taxes
because without the protection of the State they could not have earned and
enjoyed that extra income. If we interpret this principle in terms of disutility
which the tax- payers suffer by paying taxes, it follows that the tax should
impose equal marginal disutility upon every tax-payer. Two possibilities emerge
in this case. If incomes are subject to constant marginal utility, then both the
rich and the poor should be subjected to proportional taxationeach person
paying a given percentage of his income as tax. On the other hand, if we agree
with the more realistic proposition that income is subject to diminishing
marginal utility, then the richer should pay a larger proportion of their income as
taxes (that is, the taxes should be progressive).
2. Canon of convenience:
The mode and timings of tax payment should be, so far as possible, convenient
to the tax-payer. This canon recommends that unnecessary trouble to the tax-
payer should be avoided; otherwise various ill-effects may result.
3. Canon of economy:
This canon recommends that cost of collection of taxes should be the minimum
possible. It is useless to impose taxes which are too widespread and difficult to
administer. These taxes entail an unnecessary burden upon the society in the
form of additional administrative expense. The productive efforts of the people
suffer due to this wastage. Realizing that the tax collections are being wasted,
the tax-payers also tend to evade them. These canons of taxation have a sound
philosophy behind them and exhibit an insight into the practical aspects of tax
administration and its effect. However, in view of developments in economic
philosophy and problems of a modern state, a few additional principles were
also suggested by latter writers.
4. Canon of certainty:
We have learnt the canon of taxation, the various tax systems in Bangladesh and
the implementation of canon in the tax system of Bangladesh. As taxes are the
most important source of revenue of the Government so it is clear that attaining
an optimal tax structure is one of the most important issues for the government
to increase the revenue generation from taxes 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.
References:
http://www.nbr-bd.org
3. http://www.financialinfobd.com/
4. http://www.taxrates.cc