Value Added Tax is one of the most important sources of tax revenues in Bangladesh. Since its introduction in 1991, VAT is one of the most effective and efficient tools in resource mobilization. Value Added Tax has emerged as a principal instrument of taxing domestic consumption world wide during last four decades. It is now in operation in more than 130 Countries. Value added tax is a primary source of tax revenue in many European and other developed countries. Its importance is also increasing in the developing countries because of its effectiveness in mobilizing local resources. VAT proves to be an efficient tool for revenue collection; its performance, therefore, has ...view middle of the document...
Sources of Data: The report is prepared by using both primary and secondary data.
i) Primary Sources: A lots of the required information came from primary sources. These sources are -
• Practical desk work
• Relevant file study as provided by the concerned officer
• In depth study of selected cases.
• Maintaining diary.
ii) Secondary sources: Conceptual parts of the report have been collected by studying different literatures regarding credit appraisal system. Some of these secondary sources are:
• Different Circulars issued by the VAT and Customs Authority.
• Different manuals published by National Board of Revenue.
• From the website of National Board of Revenue.
• Newspaper information on several days.
• Tax Reports.
• Relevant books, Newspapers and Journals.
B. Analysis of Data: Some arithmetic and graphical tools are used in this report for analyzing the collected data and to classifying those to interpret them clearly.
Limitations of the study
• The study does not cover practical example because of confidentiality the VAT and Customs did not provide actual information..
• It is very difficult to analyze this issue without proper knowledge about VAT and Customs Administration.
• As it is not conventional so it bears some complexity to understand.
• Some words are in legal terms that make it difficult.
• It is time consuming to differentiate & understand interest & profit.
• The study could not cover the sufficient data due to time constraint
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 what they purchase.
A tax is a compulsory payment levied on the persons or companies to meet the expenditure incurred on conferring common benefits upon the people of a country.
Two aspects of taxes follow from this definition:
• A tax is a compulsory payment and no one can refuse to pay it.
• Proceed from taxes are used for common benefits or general purposes of the state.
Classification of Tax System:
1. Single Taxes:
Only one tax for everybody. Single tax is the poll tax or the head tax or adolescent tax, which is imposed on a person simply because he is there in the society.
2. Multiple Taxes:
A system under which different types of taxes are believed by the govt. according to suitability. Ex. Income Tax, VAT.
Types of Taxation:
1. Direct Tax
Direct tax is a sort of tax the impact of effect incidents and which fallback on the person on whom it is imposed. i.e.: Income Tax, Marriage Tax etc.
2. Indirect Taxes
Indirect Taxes are those burden of which can be passed on others through price vehicles.
3. Progressive Taxes
The tax rate increases as the taxable income/amount increases.
4. Regressive Taxes