more than 80 of government revenue receipts. This integration would be required at the official level and would call for re-organization of the entire tax policy sector. A study on international experience conducted by Alan Tait of the IMF shows that out of 31 countries there is no price increase at all in 21 countries. It is interesting to note that the replacement of the sales taxes and the DSC at the import stage by the VAT resulted in a higher effective rate of duty, but went rather unnoticed for obvious reasons. The major contributor to the excise taxes (about 70 percent namely, tobacco, natural gas and petroleum were initially left out of the VAT net. Currently, income tax has been imposed under the Income Tax Ordinance 1984 (ITO) promulgated on the basis of recommendations of the Final Report of the Taxation Enquiry Commission submitted in April 1979. (II) The rebate or credit mechanism is specified through the composite intermediate input price equation. Once instituted, it was immediately clear that revenues collected from the VAT system constituted a substantial share of the governments revenue in the economy.
VAT in Bangladesh are as follows: VAT is imposed on goods. As capital goods are exempted from the, vAT in Bangladesh.
At present there are eight VAT Commissionerates all over Bangladesh each headed by a Commissioner of VAT. These are summarized below Corporate Income Tax Tax holiday facility is allowed to newly set-up industrial undertakings, physical infrastructure facilities and tourism industry subject to certain specified conditions in order to promote industrialization and employment generation. Taxes on agricultural income and property incomes are negligible and poorly administered. Such registrations are compulsory for each location of a business. VAT is a tax on the value added by a firm to the goods and services it buys from other firms. Table 7shows that the percentage of direct tax in total tax revenue increased from.5 per cent in the early seventies.70 per cent in 1988/89 90/91. Balance of indirect taxes (representing around.64 of total taxes) include taxes collected on domestic production, consumption rewe gutscheine 250 fake or transactions such as VAT (11.4 SD (11.6 excise duty (1.5 foreign travel tax (0.7 electricity duty (0.6 motor vehicle tax (0.7 narcotics duty (0.2 TT (0.03 air. Such problems are often of concern to developing countries, and therein we examine the position of Value Added Tax (VAT) as a factor in their taxation strategies. Under the income VAT, only the depreciation is subtracted from gross national product. Suggestions from the visitors are welcome.