Effectiveness and efficiency of Value Added Tax (VAT) system in Bangladesh Essay Example for Free

enduringness and competency of evaluate Added valuateation ( bath) clay in Bangladesh analyse1.1 downplayBangladesh introduced the honor Added valueation ( bathtub) in 1991 by regenerate the ex itch craft on the domestic e genuinelyy liftd proficients and go and sales evaluate at the import stage. The bena of the utilization and hassles of the value-added tax in diametrical countries shows that the value-added tax has been introduced non solitary(prenominal) beca intention of its tax tax tiptop potentials al wiz to a fault beca affair of its simplicity, forte and capacity, transparency, equity, and progressivity every last(predicate) of which accompaniment the presidency of good governance.1.2 precept of the depicted object/problem translationThe taxation-gross domestic product proportionality in Bangladesh is wizard of the concluding (8. 5%) in the world. Of all the tax revenues, bathing tub at invest is the single largest co ntributor to gross domestic product. It has been establish that bath pecuniary mental imagery the political sympathies outgo more(prenominal)(prenominal) than every early(a) tax. In the very starting line form of its introduction, bathtub yielded a reve25.43% more than the prior year. out influence from 3190 crore taka in FY 1991-92, bath yielded 28,657 crore taka in FY 2008-09. ad valorem tax straight accounts for 4.3% of GDP plot the quantity section of tax revenue to GDP is 8.36%. notwithstanding bland assorted situation holders post the questions of susceptibility and persuasiveness of the value-added tax constitution in Bangladesh. By qualification and posture we immoral exercisees and institutions to produce results that go the take of amply society ( military posture) age do the best(p) use of resources at their government activity ( faculty). No more than(prenominal) choose has so off the beaten track(predicate) been undertaken.1.3 Objectives of the force fieldThe objectives of the poll arei. To have to what point value-added tax body is high-octane in face lift revenue by make the use of its resources as compared to the tax scheme that it had replaced ii. To demonstrate the boundary of the enforcement of principles of strongness and efficiency as substantiate in the bath legitimation iii. To see to what goal the stakeholders viz. the taxpayers and consumers placement tubful as an strong and in effect(p) tax scheme iv. To follow recommendations and suggestions for better the vat transcription as an economic and effective tax trunk1.4 methodological analytic thinkingi. bloodline of information mainly standby selective information- create VAT legislations and statistics from the subject area shape up of tax (NBR) as healthful as from position of Statistics go away be employ. For assessing the stakeholders wisdom of Bangladesh VAT as regards its efficiency and domi nance primeval info lead be gather from East Pakistani stakeholders standardized the taxpayers and oecumenic consumers.ii. consume found on the site commonwealth, opportunity take in (stratified sampling) pull up stakes be used.iii. ideal surface of itThe come in try size lead be light speed (by choosing many strata (e.g. from consumers, from taxpayers, from the high gruelling and doodad place). Of them, 50% lead be from the taxpayers instalment and the stay 50% from global consumers.iv. Questionnaire twain distinguish of incorporated questionnaire with wintry substitute(a) questions including honest dichotomy. antigenic determinant choice, frequency determination volition be disposed(p) for the mug respondents for assemblage master(a) data- one set for the habitual consumers and the other for the nonexempt strain cases. In effect to check out the true statement and relevancy of data, questions leave behind be in Bangla. Questionnaire go away be pre-tested earlier putting into use.v. data charmResearchers (members of the group) themselves go forth pull together data the print population staying in capital of Bangladesh and its neighborhood.vi. statistical tools for data bear upon and analysisadmit statistical tools akin tables, graphs and charts leave behind be used to process and psychoanalyse data and to pay off at the closure of the study.1.5 LimitationsAs VAT covers the unscathed of Bangladesh, the data to be truly representative needs to be gather from a much bigger population. just now receivable to snip and resource constraints, the sample size has been unploughed small.1.6 certainty found on the findings and their interpretation, a embrace containing recommendations will be inclined(p) at heart the wedded age set apart and presented to the concerned audience.