z

Narrower the tax base

The base of tax is much narrower because their there are lot of critical factors in the bureaucracy so the time has changed but the pattern dosen't change at all.

Tariff value is not updated

The tariff value doesn't so much updated the last updated tariff value is so high so that

Listning to the powerful people

The tax officer pay more attention to the big corporation, because they take a higher amount of money from the corporatin. When a treader goes to pay his tax he make a little attention by the officer.

It is a biggest problem of our buirrecracy

Unimprovements in the system

The tax taken system is not improved this question rasied several times in the NBR, the system is so much critical that any new people go to the tax office he doesn't be able to give the tx. He or she must take the help of the others or he or she kept a permanent lawer for himself, which is also costly.

Old structure of laws, rules, working procedures and overall tax structure.

It is a unfortunate factor to the Bnagladeshi people that the structure, rules working procedure is not well developed , Broader environment of hostility between the tax-payers and the tax collectors conflict of interests in the NBR:

The tax payers and the tax collectors have a lot of conflict among them. The tax payters like a ordinary person it is quite difficult for him to make a proper adjucement in the tax payment so the tax collectors take the advantage and intentionaly make a critical situation for the tax payer so that he can take bribe from the particular person.

Example, someone who has worked for income tax knows the income tax ordinance and rules, so he can quickly refer to a rule of a section of the law which obviously other can't. we have to open the book, ask someone. But decision making is a totally different thing. we don't do assessment of income tax returns. We the people just make the statement of our income.

Corruption of tax collectors

The tax collector take the bribe from the people, in our country a TIN holder first appoint a lawyer for calculating his tax then he gives his tax at the Bank then also pay bribe to the tax collectr for approving the payment so it is vary unfortuate for the people that they have tlo pay the more money for the payment, some thimes it is much higher then the actual tax payment. So the collectors also play a biger role for the non payment of tax .

Poor ammount of direct tax collection

The taxable annual income in Bangladesh starts at Taka 165,000. For women and those above 70 it starts at Taka 180,000. In India it starts at Rupees 150,000. For women it

starts at Indian Rupees 180,000 and for those above 65 at Rupees 225,000. The higher tax rates in Bangladesh show that the Bangladeshis pay more tax than the Indians. The gap in the tax rates for men and women is also narrower than that of India.

Cultural problem.

Tax evasion is a cultural problem. I personally feel it is very sad but my realisation is that this is the truth. We want to get rich overnight by hook or by crook. In the process, we don't mind trampling the rights and interests of others, defrauding the government... cheating the customers. We are ready to do it as long as our bank account keeps going up.

Lack of respectness

The govrement officer doesn't respect to the citizen though they are paid by the citizen's money but when they want to pay the tax the officer just treated them badly.

How could the National Board Of Revenue can handle this problem.

Boarding the tax base so that everyone can makes some contribution to pay their tax

keeping tax rate as low as possibe so that all kinds of people can contribute

In the past 2yars when the caretaker govrenment is their so much initiative was taken to involve people to pay tax . More or ess those initiative made some progress. We see that from different part so many people cotribute by paying tax, and those two years the NBR generate most of the revenues in the history of Bnagladesh.

Minimizing the regulation and the paper work for taxpayers. The tax system should be simple and plain so that everyone can easily understand it. The assessment of tax must be simplified. To avoid corruption taxation should be simple

Utilizing the best of the income tax. Contribute the most to the development of the country

Reducehing the corruption in the govrenment officer

Take morale steps and imtroducing the new methodology for the development of the officer

Direct taxation on agricultural sector normally takes two forms; land revenue tax

and tax on agricultural income. This sector accounted for more than 50% of total

direct tax revenue in the early sixties, but now agricultural income tax is very

negligible. It accounts for only 0.01% of the GDP, although the average

contribution of agriculture to the GDP is 35%. Agriculture, more specifically,

non-farm activity, still remains an untapped source of revenue to the government.

In most cases, income from agriculture does not exceed the ceiling of non-taxable

limit primarily due to subdivision and fragmentation of holdings for which

income is distributed to different hands.

Take steps to collect the direct Tax.

Updare the Tariff system

Every tax has a cost of collection. It is important that the cost of collection should be as small as possible. It will be useless to imposed tax which is too widespread and difficult to administer. So through mobilizing the rules and regulation it should control the cost of tax collection.

Reducehing the system of tax payment , making sich a way that any person can gives his tax by ine day

Train the emplyee and improve them moraly and motivate them for doing good thing to the people

government should proper use the amount they get from tax, improve the infrastructure of our country, if e look the year 2007-2008 those year a lots of development work happened and people see all the development and get benifit from those work

It should be possible for the authorities, without undue delay, to revise the tax structure, both with respect to its coverage and rates, to suit the changing requirements of the economy and of the treasury.

lastly but not the least , Tax is a question of ethics it is quite impossible for the tax authorities to go door to door and inquiry about the tax payment of people. So, the people should be ethical and they should pay their tax correctly from their earnings.

From the above we come to learn that there are lot of problems in NBR that's why people are discourage to give their tax. Again to the some extent there are also people's false. Our country's big giant corporation they also evade tax , it is a cumulative probem so we should improve our ethics and moral, and we should learn that “if there is any rule imposed on us we have to obtain it , whether we like it or not”.

AssignmentOn

Taxation

Why People Want To avoid Tax?

Tax is the main source of revenue of Bangladesh. So it is base point for Bangladesh economy to improve the country's infrastructure and other territory. After 1971 we receive many aid from foreign country but after 39 years of liberation war our country doesn’t progress a lot though we have more potentiality then any other country, in this point a question arise

Why we are lagging behind?

Where is the problem?

Revenue collection is not a problem these days. Revenue collection has always been a problem in Bangladesh. People in Bangladesh want to get everything for free. So it is time to change that mentality. The problem is with the attitude and mentality.

Our country is mostly depended on Vat rather than Tax though tax is the main source of revenue collection of any country. In Bangladesh there are 20lac tax identification number (TIN) holder, though it is unfortunate that most of the TIN holder don’t give the actual amount of Tax they have to pay to the government. So Why people don't pay Tax there are some obvious reasons behind this, those reasons are given below:

Defective systems

The system is defective. It is defective because of two reasons. One is, we have inconsistencies in our structure. Secondly, the system has given too much discretion to the officers. As a result, many, not all, of them take advantage and that leads to corruption.

Inconsistencies structural

There are lots of inconsistencies in the structure of the payment of tax. When a ordinary person wants to go pay his tax in NBR it is quite impossible for him to identify to whom his tax payment will concern.

Discretion among the amount

There are a lot of discrimination between the actual amount of money the people have and the amount what they express. The people think that if they disclose their actual amount they will suffer in the future by the government authorities and the others.

Like in United States, people submit their tax form; they receive whatever they have to. If there is any discrepancy, people receive a letter. In our country, people have to appear. they have to hire a tax lawyer, another burden.

Client-bureaucracy interface

Due to the interference there are a lot of complaints from the tax payers. In fact they are afraid of tax collectors, tax officials. Nothing is happening. When a person want to give his tax the Tax officer asked for bribe so the ordinary people they become afraid of it if they don't give this they may suffer in the future for unavoidable situation.

Narrower the tax base

The base of tax is much narrower because there are lots of critical factors in the bureaucracy so the time has changed but the pattern doesn’t change at all.

Tariff value is not updated

The tariff value doesn't so much updated the last updated tariff value is so high so that

Listening to the powerful people

The tax officer pays more attention to the big corporation, because they take a higher amount of money from the corporation. When a trader goes to pay his tax he make a little attention by the officer.

It is a biggest problem of our burrocracy

Unimprovements in the system

The tax taken system is not improved this question rasied several times in the NBR, the system is so much critical that any new people go to the tax office he will not be able to give the tax. He or she must take the help of the others or he or she kept a permanent lawyer for himself, which is also costly.

Old structure of laws, rules, working procedures and overall tax structure.

It is a unfortunate factor to the Bnagladeshi people that the structure, rules working procedure is not well developed , Broader environment of hostility between the tax-payers and the tax collectors conflict of interests in the NBR:

The tax payers and the tax collectors have a lot of conflict among them. The tax payters like a ordinary person it is quite difficult for him to make a proper adjucement in the tax payment so the tax collectors take the advantage and intentionaly make a critical situation for the tax payer so that he can take bribe from the particular person.

Example, someone who has worked for income tax knows the income tax ordinance and rules, so he can quickly refer to a rule of a section of the law which obviously other can't. we have to open the book, ask someone. But decision making is a totally different thing. we don't do assessment of income tax returns. We the people just make the statement of our income.

Corruption of tax collectors

The tax collector take the bribe from the people, in our country a TIN holder first appoint a lawyer for calculating his tax then he gives his tax at the Bank then also pay bribe to the tax collectr for approving the payment so it is vary unfortuate for the people that they have tlo pay the more money for the payment, some thimes it is much higher then the actual tax payment. So the collectors also play a biger role for the non payment of tax .

Poor ammount of direct tax collection

The taxable annual income in Bangladesh starts at Taka 165,000. For women and those above 70 it starts at Taka 180,000. In India it starts at Rupees 150,000. For women it starts at Indian Rupees 180,000 and for those above 65 at Rupees 225,000. The higher tax

rates in Bangladesh show that the Bangladeshis pay more tax than the Indians. The gap in the tax rates for men and women is also narrower than that of India.

Cultural problem.

Tax evasion is a cultural problem. I personally feel it is very sad but my realisation is that this is the truth. We want to get rich overnight by hook or by crook. In the process, we don't mind trampling the rights and interests of others, defrauding the government... cheating the customers. We are ready to do it as long as our bank account keeps going up.

Lack of respectness

The govrement officer doesn't respect to the citizen though they are paid by the citizen's money but when they want to pay the tax the officer just treated them badly.

How could the National Board Of Revenue can handle this problem.

Boarding the tax base so that everyone can makes some contribution to pay their tax

keeping tax rate as low as possibe so that all kinds of people can contribute

In the past 2yars when the caretaker govrenment is their so much initiative was taken to involve people to pay tax . More or ess those initiative made some progress. We see that from different part so many people cotribute by paying tax, and those two years the NBR generate most of the revenues in the history of Bnagladesh.

Minimizing the regulation and the paper work for taxpayers. The tax system should be simple and plain so that everyone can easily understand it. The assessment of tax must be simplified. To avoid corruption taxation should be simple

Utilizing the best of the income tax. Contribute the most to the development of the country

Reducehing the corruption in the govrenment officer

Take morale steps and imtroducing the new methodology for the development of the officer

Direct taxation on agricultural sector normally takes two forms; land revenue tax

and tax on agricultural income. This sector accounted for more than 50% of total

direct tax revenue in the early sixties, but now agricultural income tax is very

negligible. It accounts for only 0.01% of the GDP, although the average

contribution of agriculture to the GDP is 35%. Agriculture, more specifically,

non-farm activity, still remains an untapped source of revenue to the government.

In most cases, income from agriculture does not exceed the ceiling of non-taxable

limit primarily due to subdivision and fragmentation of holdings for which

income is distributed to different hands.

Take steps to collect the direct Tax.

Updare the Tariff system

Every tax has a cost of collection. It is important that the cost of collection should be as small as possible. It will be useless to imposed tax which is too widespread and difficult to administer. So through mobilizing the rules and regulation it should control the cost of tax collection.

Reducehing the system of tax payment , making sich a way that any person can gives his tax by ine day

Train the emplyee and improve them moraly and motivate them for doing good thing to the people

government should proper use the amount they get from tax, improve the infrastructure of our country, if e look the year 2007-2008 those year a lots of development work happened and people see all the development and get benifit from those work

It should be possible for the authorities, without undue delay, to revise the tax structure, both with respect to its coverage and rates, to suit the changing requirements of the economy and of the treasury.

lastly but not the least , Tax is a question of ethics it is quite impossible for the tax authorities to go door to door and inquiry about the tax payment of people. So, the people should be ethical and they should pay their tax correctly from their earnings.

From the above we come to learn that there are lot of problems in NBR that's why people are discourage to give their tax. Again to the some extent there are also people's false. Our country's big giant corporation they also evade tax , it is a cumulative probem so we should improve our ethics and moral, and we should learn that “if there is any rule imposed on us we have to obtain it , whether we like it or not”.

Assignment

OnTaxation

Prepared For

Mohammad Faridul AlamSenior Lecturer & Assistant Proctor

Department of Business AdministrationEast West University.

Prepared By

Md. Yassin Hossain ID: 2007-1-10-115

Section: 1

Submission Date: - 15th April, 2010.

Department of Business Administration

Date: - 15th April, 2010.Prepared For

Mohammad Faridul AlamSenior Lecturer & Assistant Proctor

Department of Business AdministrationEast West University.

Prepared By

Md. Yassin Hossain 2007-1-10-115

Section: 1

Department of Business Administration