Tax System in Bangladesh

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This dissertation report highlights on our practical experience in different types and categories ‘Tax System’ especially Tax System of Bangladesh. During our working period, we tried to gather information from different sources like News Paper, web sites. But the NBR does not provide information in the web site directly and even it does not publish tax structure which is implemented in Bangladesh . So, we have taken much information about tax on the basis of our personal concept and view of Tax System of Bangladesh. To complete this report, we have gained practical knowledge about various types of Tax System. For example, Tax System of Bangladesh, tax structure in Bangladesh , canon of taxation and implementation of the canon of tax in Tax System of Bangladesh. In this way, we have collected information regarding overall tax system in Bangladesh .  As, tax is an important part of our country development. So, day by day, people are getting more conscious and informed about tax.  

1.1. Origin of the report:
The taxation system in Bangladesh is based on the ability to pay theory and hence utilizes the progressive tax system. The revenue administrative body is the National Board of Revenue under the Ministry of Finance. The main responsibility of NBR is to collect domestic revenue for the government. However, revenue collection and management has been a perennial challenge for Bangladesh since its very inception. As a resource constraint nation coupled with limited capacity, we are confronted with persistent pressure to address that challenge. The implementation of an effective revenue system will involve the setting up of new organizational structures, the designing of new procedures and forms, writing of new instructions, arranging for the provision of better management information and statistics, etc. This gives the administration the opportunity to develop new skills and abilities which can subsequently be deployed. The report analyses the current tax situation of Income Tax, Import Duties and VAT. The revenue trend analysis is limited to the last five years and references from the taxation system and reforms in neighboring countries have been taken in order to suggest the recommendations.  

1.2. Objectives:

We can gain knowledge about the tax system of Bangladesh by reporting this topic.  Following aspects of tax can be learned from this report

1. To get the idea about the collection of revenue, as  the context of Bangladesh . 2. How to distribute the income of people in Bangladesh is allocated. 3. How economic control to achieve their micro economic control. 4. Effect of tax system of Bangladesh for economic development. 5. How national income is raised in the desired level.

1.3. Methodology:

Basically there are two types of data sources.
Source of Data


Figure: Sources of data
Primary: Interview, observation, and 3-month work experience with different divisional in charge and suggestions of many executives of the bank

Secondary: Annual reports of PBL, Instruction circular of Head Office, Brochures of different Banks, News Paper & Magazine regarding Banking issues, Seminar papers and so on. To make this report we have followed the secondary sources like, online, reference Role of tax in Bangladesh  

1.4. Limitations:

There are some limitations of this report.
1.Necessary data and information are neither adequate nor well finished. 2. This assignment does not analyze the critical analysis of different sectors in the tax system of Bangladesh in details. The assignment has encountered these limitations that may hinder the progress. But with constant effort, our goal  is to minimize the negative efforts of these limitations.  

2.o. Role of taxation in Bangladesh

2.1.Tax and its classification

Tax is a compulsory levy imposed by the Government. People pay taxes to the Government on the basis of what they earn, what they own and...
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