Incidence of Value Added Tax (Vat) in the Developing Countries: A Case in Bangladesh

Loading...
Thumbnail Image
File version
Author(s)
Faridy, Nahida
Sarker, Tapan
Griffith University Author(s)
Primary Supervisor
Other Supervisors
Editor(s)
Date
2011
Size
875027 bytes
File type(s)
application/pdf
Location
License
Abstract

VAT is a broad-based tax levied at multiple stages of production (and distribution) with - crucially taxes on inputs credited against taxes on output. Bangladesh introduced VAT in 1991 replacing the previous taxes like sales tax, excise duty and business turnover taxes. In last two decades VAT has become an all encompassing domestic tax covering the domestic manufacturing, wholesale, retail and all the service sectors in the country. This paper is a first attempt to measures the incidence of Value Added Tax (VAT) in Bangladesh. The results show that the VAT incidence varies for people in different income groups. For instance, the VAT incidence for the lowest income group is 6.92 percent whereas for the highest income group it is only 4.56 percent. The higher income groups are also enjoying fewer burdens than the lower income groups. Comparing the results with and without VAT exemptions, the study finds that overall the VAT in Bangladesh is regressive. The study provides some policy recommendations that could help design a better VAT system in the developing countries with a particular case in Bangladesh.

Journal Title
International Journal of Trade, Economics, and Finance
Conference Title
Book Title
Edition
Volume
Issue
Thesis Type
Degree Program
School
DOI
Patent number
Funder(s)
Grant identifier(s)
Rights Statement
© 2011 IACSIT. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Rights Statement
Item Access Status
Note
Access the data
Related item(s)
Subject
Taxation Accounting
Persistent link to this record
Citation
Collections