The Reasons of Evading

Taxes in Bangladesh

Based on Ethical, Social and Environmental Causes and Effects

Submitted By: Team Market Tracker

The Reasons of Evading

Taxes in Bangladesh
Based on Ethical, Social and Environmental Causes and Effects

Submitted to:
Mahathey Hasan Jewel
Lecturer
Dept. of marketing

Submitted by:
Team Market Tracker
4th batch

Submission date: 19 January 2012

JAGANNATH UNIVERSITY

GROUP PROFILE :

S.L Name of Members

I.D
07882891

01.

Md. Sheikh Ariful Islam( G.L )

02.

Md. Abu Kawsar

105437

03.

Kazi arafat

105415

04.

Syed Magfur Ahmed

091741

05

Md. Forhad Hossain

091659

06

Md. Ashrafur Rahman

105480

07

Al Imran

091762

08

Md. Saddam Hossain

105438

09.

Tenver Ahmed Mozaed

091737

10.

Mohammad Ali

105500

4|Page

LETTER OF TRANSMITTAL

Mahathey Hasan Jewel

Lecturer,
Department of Marketing
Jagannath University
Dhaka

Dear Sir,
Here is the report you asked us to prepare on Reasons of Avoiding Taxes in Bangladesh. After
researching and studying the assignment, we made a copy of it.
All of the major points associated with Socio cultural effects, Ethical issues , Environmental and
political issues are included here.
Thank you again for giving us the opportunity to do this task.
Please contact us when you have finished reading the report or if you have any questions.
Hope to hear from you soon.

Sincerely,
Md. Sheikh Ariful Islam( G.L )
On behalf of team Market Tracker

5|Page

Table of Contents
SUMMARY ..................................................................................................................................................... 6
INTRODUCTION ............................................................................................................................................. 7
HISTORY ........................................................................................................................................................ 7
DEFINITION OF TAX ....................................................................................................................................... 9
TAX ADMINISTRATION IN BANGLADESH ...................................................................................................... 9
MAIN FEATURES OF BANGLADESH TAX STRUCTURE .................................................................................... 9
OVERVIEW OF BANGLADESH TAX LAWS..................................................................................................... 12
REASONS FOR AVOIDING TAX IN BANGLADESH ......................................................................................... 13
SOURCES ..................................................................................................................................................... 19

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SUMMARY

Most developing countries are increasingly focusing on domestic resource mobilization

toward economic development. In this context, tax performance is of crucial importance,
especially for a developing country, since it is the prime source for domestic resource
mobilization. Many developing countries often face difficulty in augmenting tax revenue
to the desired level and considerable attention is being devoted to formulating fiscal
policy best suited for increasing revenue. In this assignment we focus on the tax, its
history, definition and why the people of Bangladesh avoid taxes and what the
government should do to solve this problem.

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INTRODUCTION
Bangladesh, as an emergingg de
developing country, is committed to augme
gmenting revenue
and achieving fiscal discipline
line with a view to increasing self-reliance.
nce. The external
environment influencing thee ta
tax performance of Bangladesh has changed
ged remarkably as
the country became increasing
singly integrated with the global economy during
dur
the 1990s
(McCarten, 2005). In recentt ye
years, the Government of Bangladesh has
as initiated
i
some
administrative and policy refor
eforms in the tax system. An improved tax administration
adm
in
association with some prag
pragmatic policy initiatives has resulted
d in
i a modest
improvement in the tax-GD
GDP ratio of late. However, the perform
formance is still
unsatisfactory as compared
ed to other countries at a similar stage
age of economic
development.
HISTORY
The first known system of taxa
taxation was in Ancient Egypt around 3000
0 BC - 2800 BC in
the first dynasty of the Old King
Kingdom. The earliest and most widespread
d form
fo of taxation
was the corve and tithe.. Th
The corve was forced labour provided to the state by
peasants too poor to pay oth
other forms of taxation (labour in ancient
ent Egyptian is a
synonym for taxes). Recordss fro
from the time document that the pharaoh
h would
wo
conduct a
biennial tour of the kingdom
om, collecting tithes from the people. Othe
ther records are
granary receipts on limestone
ne fflakes and papyrus. Early taxation is also
o described
de
in the
Bible. In Genesis (chapter 47, verse 24 - the New International Version
on), it states "But
when the crop comes in, give
ve a fifth of it to Pharaoh. The other four-fifths
fths you may keep
as seed for the fields and
d aas food for yourselves and your househo
seholds and your
children". Joseph was tellingg th
the people of Egypt how to divide their crop,
cro providing a
portion to the Pharaoh. A shar
share (20%) of
the crop was the tax.
Egyptian peasants seized
ed for
payment of taxes. (Pyramid Age
Age)

non-

Later, in the Persian Empire,, a regulated

and sustainable tax system wa
was introduced by Darius I the Great in 500
00 BC;
B the Persian
system of taxation was tailored
ored to each Satrapy (the area ruled by a Satrap
atrap or provincial
governor). At differing times,
s, th
there were between 20 and 30 Satrapies in the
th Empire and
each was assessed according
ing tto its supposed productivity. It was the
e responsibility
re
of

8|Page

the Satrap to collect the due amount and to send it to the emperor, after deducting his
expenses (the expenses and the power of deciding precisely how and from whom to
raise the money in the province, offer maximum opportunity for rich pickings). The
quantities demanded from the various provinces gave a vivid picture of their economic
potential. For instance, Babylon was assessed for the highest amount and for a startling
mixture of commodities; 1,000 silver talents and four months supply of food for the
army. India, a province fabled for its gold, was to supply gold dust equal in value to the
very large amount of 4,680 silver talents. Egypt was known for the wealth of its crops; it
was to be the granary of the Persian Empire (and, later, of the Roman Empire) and was
required to provide 120,000 measures of grain in addition to 700 talents of silver. This
was exclusively a tax levied on subject peoples. Persians and Medes paid no tax, but,
they were liable at any time to serve in the army.
The Rosetta Stone, a tax concession issued by Ptolemy V in 196 BC and written in three
languages "led to the most famous decipherment in historythe cracking of
hieroglyphics".
In India, Islamic rulers imposed jizya (a poll tax on non-Muslims) starting in the 11th
century. It was abolished by Akbar.
Numerous records of government tax collection in Europe since at least the 17th
century is still available today. But taxation levels are hard to compare to the size and
flow of the economy since production numbers are not as readily available, however.
Government expenditures and revenue in France during the 17th century went from
about 24.30 million livres in 1600-10 to about 126.86 million livres in 1650-59 to about
117.99 million livres in 1700-10 when government debt had reached 1.6 billion livres. In
178089, it reached 421.50 million livres. Taxation as a percentage of production of final
goods may have reached 15%20% during the 17th century in places such as France, the
Netherlands, and Scandinavia. During the war-filled years of the eighteenth and early
nineteenth century, tax rates in Europe increased dramatically as war became more
expensive and governments became more centralized and adept at gathering taxes. This
increase was greatest in England, Peter Mathias and Patrick O'Brien found that the tax
burden increased by 85% over this period. Another study confirmed this number,
finding that per capita tax revenues had grown almost six fold over the eighteenth
century, but that steady economic growth had made the real burden on each individual
only double over this period before the industrial revolution. Average tax rates were
higher in Britain than France the years before the French Revolution, twice in per capita
income comparison, but they were mostly placed on international trade. In France,
taxes were lower but the burden was mainly on landowners, individuals, and internal
trade and thus created far more resentment.

9|Page

DEFINITION OF TAX
To tax (from the Latin taxo; "I estimate") is to impose a financial charge or other levy
upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of
a state such that failure to pay is punishable by law. Taxes are also imposed by many
subnational entities. Taxes consist of direct tax or indirect tax, and may be paid in
money or as its labor equivalent (often but not always unpaid labor).
A tax may be defined as a "pecuniary burden laid upon individuals or property owners to
support the government. A tax "is not a voluntary payment or donation, but an enforced
contribution, exacted pursuant to legislative authority" and is "any contribution
imposed by government whether under the name of toll, tribute, tallage, gabel, impost,
duty, custom, excise, subsidy, aid, supply, or other name."
TAX ADMINISTRATION IN BANGLADESH
National Board of Revenue (NBR) is the central authority for tax administration in
Bangladesh and collects almost 75.37 percent of total revenue for the country, non tax
revenue 20.88%, revenue beyond NBR 3.76%. It was 78% in 2000. Tax revenue
constitutes around 80 percent of total internal resources in the country. The NBR under
the Internal Resources Division of the Ministry of Finance is the apex tax authority of
Bangladesh and collects about 95 percent of the countrys total tax revenue. The nonNBR portion of tax mainly includes narcotics duty, land revenue, non-judicial stamp,
registration fee and motor vehicles tax.
MAIN FEATURES OF BANGLADESH TAX STRUCTURE
1. Tax-GDP ratio is very low
In FY 1999-00, revenue/GDP ratio was 8.47 percent, which gradually rose to 10.79
percent in FY2005-06. In FY 2007-08 the revenue/GDP further rose to 11.17 percent and
the increasing trend of revenue-GDP ratio further enhanced to 11.24 percent in FY200809. Table 1 shows tax and non-tax revenue receipts and tax-GDP ratio during the period
from FY1999-00 to FY2008-09. As Table 1 shows, the tax GDP ratio in Bangladesh is very
low, it is less than 10%. Though tax-GDP ratio has risen from 5% in the early 1980s, it is
still very low compared to even the neighboring countries. It is also lowest among the
developing countries.

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Table 1: Revenue as percentage of Gross Domestic Product

Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

Total Revenue as Tax Revenue as %

% of GDP
of GDP
8.47
6.78
9.6
7.8
10.21
7.81
10.35
8.30
10.63
8.5
10.57
8.62
10.79
8.70
10.58
8.40
11.30
8.96
11.25
9.03
11.5
9.3

Non-tax Revenue
as % of GDP
1.69
1.8
2.4
2.05
2.13
1.96
2.09
2.18
2.34
2.22
2.20

Source: Bangladesh Economic Review 2010, Ministry of Finance, Government of

Bangladesh
2. Heavier Reliance on Indirect Taxes
Total taxes in Bangladesh are divided into direct and indirect taxes. Direct taxes in
Bangladesh consist of taxes on income (income tax, corporation tax, agricultural income
tax) and taxes on property (wealth tax, gift tax, estate duty, capital gains tax, urban
property tax, house rent, land revenue, registration and non-judicial stamp). Like other
developing countries, direct taxes contribute little to overall tax revenue in Bangladesh.
As Table 2 shows, around 75% of the total tax revenue in Bangladesh is comprised of
indirect taxes. The direct taxes in general accounted for less than a fourth of the total
tax revenue of the country. Traditionally, the tax structure of Bangladesh is such that it
has to rely on indirect tax for revenue generation, which is discriminatory in nature.
Table 2: Composition of Tax Revenue in Bangladesh
FY
2003
2004
2005
2006
2007

Direct Taxes (%)

22.96
22.04
21.87
22.95
23.13

Indirect Taxes (%)

75.78
76.88
77.21
76.20
75.81

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Source: NBR, cited from Bangladesh Bank, Working Paper Series: WP0715, June 2007
Among the indirect taxes, VAT constitutes 39 percent of total tax revenue for FY09,
followed by supplementary duty as shown in figure 1. Taxes on Income and Profit
occupies major share of direct taxes, with 26 percent of total tax revenue in FY09.
The sources for such high growth of revenue collection in the recent years are the
increase in income tax and value added tax (VAT) at local stage which grew by 20.83%
and 25.60% respectively. A slow move towards increasing the income tax is being
observed recently. The proportion of tax is targeted at 29% and of VAT by 35% in FY11.
In an effort to improve the revenue scenario revenue tax-GDP and revenue-GDP ratio
have been targeted to be to 9.3% and 11.6% respectively in FY11 as opposed to 8.8%
and 11.5% respectively in FY10.
Table 3: Composition of Tax Revenues in Bangladesh-FY 2008-09

Vat
Supplementary duty
Excise Duty
Income Tax
Other taxes and duties
Import Duty

Percentage
39%
16%
0%
26%
1%
18%

Source: Bangladesh Economic Review 2010, Ministry of Finance, Government of

Bangladesh
3. Narrowly Based Tax Structure
Both direct and indirect taxes are quite narrowly based in Bangladesh. For example, in
direct taxes, agricultural land has not been a buoyant source of revenue as the rates
have not been revised periodically (McCarten, 2005). A significant number of tax
expenditure measures exist in both direct and indirect taxes which creates an adverse
impact on the overall revenue effort.
4. Low Revenue Productivity and High Administrative Costs
Empirical studies have found that poor logistics, lengthy procedures, unofficial
payments, etc. of Bangladesh tax system lead to high administrative costs and low
revenue productivity (McCarten, 2005).

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OVERVIEW OF BANGLADESH TAX LAWS

A. National Income Taxes
Overview
Bangladesh imposes income tax on net income at the national level. The definition of
income subject to tax is expansive and includes most capital gains. Taxable business
income is based on accounting income, adjusted for nondeductible expenses and
statutory allowances. Bangladesh offers several tax incentives, including tax holidays
specified by the National Board of Revenue and reduced tax rates for specific categories
of income and investors.
Individuals
Individuals resident in Bangladesh are subject to tax on their worldwide income. For
most types of income, individual rate brackets are generally progressive from zero to 25
percent. Capital gains are generally subject to tax at progressive rates from zero to 15
percent. Dividends and interest are generally are taxable to residents at a rate of 10
percent.
Companies
Companies resident in Bangladesh are subject to tax on their worldwide income. The
general rate applicable for publicly traded companies having a registered office in
Bangladesh and regularly distributing certain required dividends is 30 percent. The
general rate for all other companies, including nonresident companies, is 40 percent.
Banks, insurance companies, and other financial institutions are subject to income tax at
a rate of 45 percent and to an excess profits surtax of 15 percent on profits exceeding
50 percent of capital and reserves. Dividends generally are subject to a withholding tax
of 10 percent.
B. International Aspects under Domestic Bangladesh Law
Residency
Generally, resident individuals and companies are subject to income tax on their
worldwide income, while nonresident individuals and companies are subject to tax only
on their income from sources in Bangladesh. Individuals are generally resident for tax
purposes if they are present for 182 days or more in a tax year, or are present in
Bangladesh for more than 90 days in a tax year and have been present in Bangladesh for
a total of more than 364 days during the four preceding tax years. However, noncitizen
technicians employed in Bangladesh are exempted from tax on their salaries for the first
three years of employment upon approval by the tax department provided that the
salaries are not taxed outside Bangladesh. After this three-year period, such individuals
may be considered residents and taxed on their worldwide income. An employee
present in Bangladesh for fewer than 182 days in a tax year is exempt from income tax
on a salary received from an employer having the same country of residence, provided
that the salary is not paid by a permanent establishment and neither taxed outside
Bangladesh nor deducted from the employers taxable income in Bangladesh. A

13 | P a g e

company is resident in Bangladesh if it is registered under the laws of Bangladesh or if

the control and management of its business are exercised in Bangladesh.
Sources of income
Income from sources in Bangladesh includes income derived from services rendered and
activities carried out in Bangladesh, income from sales of property located within
Bangladesh, and income reasonably attributable to the conduct of a business within
Bangladesh. The concept of a permanent establishment is not used in Bangladesh
internal tax law except in connection with the disallowance of an exemption from
income tax for short-term foreign workers income earned there.
Nonresident withholding
Nonresident individuals are generally subject to tax on Bangladesh-source income at a
rate of 25 percent without allowance of deductions, exemptions or other relief.
Nonresident companies are subject to tax on Bangladesh-source income at a rate of 40
percent without allowance of tax credits. Bangladesh imposes and requires withholding
of tax on dividends paid by resident companies to nonresident companies at a rate of 40
percent. Dividends paid to nonresident individuals are subject to withholding tax at a
rate of 25 percent. Bangladesh-source interest payments to nonresident corporations
generally are subject to withholding tax at a rate of 40 percent. Interest payments to
nonresident individuals are generally subject to withholding tax at a rate of 25 percent.
As with dividends, the withholding tax rate is the income tax rate applicable to the
recipient. Bangladesh-source royalties and technical assistance fees paid to nonresident
individuals or nonresident companies are subject to a 10-percent withholding tax. In the
absence of a treaty, Bangladesh generally provides double tax relief by way of a credit
against Bangladesh tax.
C. Other Taxes
In addition to the taxes described above, other taxes are levied at the national level. A
value-added tax is imposed at a standard 15 percent rate, which is reduced to 1.5
percent for all sales of goods in metropolitan and municipal areas. A turnover tax is
imposed on local products and services at a rate of four percent if total annual turnover
is less than 2 million taka (approximately $30,000). Excise taxes are imposed upon
certain luxury goods and services, vehicles, natural gas, liquor, cigarettes and certain
other goods and services. A stamp tax of 10 percent is imposed upon transfers of real
property. Duties of 7.5 to 25 percent are imposed upon exports. Gross receipts of
nonresident air transport companies, nonresident shipping companies, and nonresident
companies engaged in oil exploration are taxed at rates of three percent, eight percent,
and 3.75 percent respectively.
REASONS FOR AVOIDING TAX IN BANGLADESH
Tax is the main source of Bangladesh. So it is base point for Bangladesh economy to
improve the countrys infrastructure and other territory. After 1971 we receive many

14 | P a g e

aids from foreign country but after 40 years of liberation war our country doesnt
progress a lot through 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 r e v e n u e c o l l e c t i o n o f a n y c o u n t r y . I n B a n g l a d e s h
t h e r e a r e 2 0 l a c t a x i d e n t i f i c a t i o n number (TIN) holders, though it is
unfortunate that most of the TIN holder dont 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:
1. 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.
2. Inconsistencies structural
There are lots of inconsistencies in the structure of the payment of tax. When san
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.
3. 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.

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4. 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.
5. Narrower the tax base
The base of tax is much narrower because there are many
c r i t i c a l f a c t o r s i n t h e bureaucracy so the time has changed but the pattern
does not change at all.
6. 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 makes a little attention by the officer. It is a biggest problem of
our burro racy.
7. Improvements in the system
The tax taken system is not improved this question raised 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.
8. Old structure of laws, rules, working procedures and overall tax structure
It is an unfortunate factor to the Bangladeshi people that the
s t r u c t u r e , r u l e s w o r k i n g 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 payers like a ordinary person it is quite difficult
for him to make a proper adjustment in the tax payment so the tax collectors take
the advantage and intentionally 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

16 | P a g e

assessment of income tax returns. We the people just make the statement
of our income.
9. Corruption of tax collectors
The tax collector take the bribe from the people, in our country a TIN holder first
appoint lawyer for calculating his tax then he gives his tax at the Bank then also pay
bribe to the tax collector for approving the payment so it is vary
unfortunate for the people that they have to pay the more money for the
payment, sometimes it is much higher then the actual tax payment. So the
collectors also play a bigger role for the non payment of tax.
10. Poor amount 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.
11. Cultural problem.
Tax evasion is a cultural problem. I personally feel it is very sad but my realization 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.
12. Lack of respecters
The government 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 the National Board of Revenue could handle this problem.
Boarding the tax base so that everyone can makes some contribution to pay
their tax
keeping tax rate as low as possible so that all kinds of people can contribute
In the past 2yars when the caretaker government is their so much
initiative was t a k e n t o i n v o l v e p e o p l e t o p a y t a x . M o r e o r l e s s

17 | P a g e

t h o s e i n i t i a t i v e s m a d e s o m e progress. We see that from different part so

many people contribute by paying tax, a n d t h o s e t w o y e a r s t h e N B R
g e n e r a t e m o s t o f t h e r e v e n u e s i n t h e h i s t o r y o f Bangladesh.
Minimizing the regulation and the paper work for taxpayers. The tax is simple and
plain so that everyone can easily understand it. The assessment of tax must
system should 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
Reducing the corruption in the government officer
Take morale steps and introducing 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 n e g l i g i b l e . I t a c c o u n t s f o r o n l y 0 . 0 1 % o f t h e G D P ,
a l t h o u g h t h e a v e r a g e 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 l i m i t p r i m a r i l y d u e t o
s u b d i v i s i o n a n d f r a g m e n t a t i o n o f h o l d i n g s f o r w h i c h income is
distributed to different hands.
Take steps to collect the direct Tax.
Up dare 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 wide
spread and difficult to administer. So through mobilizing the rules and regulation
it should control the cost of tax collection.
Reducing the system of tax payment , making such a way that any
person can gives his tax by one day
Train the employee and improve them morally and motivate them for
doing good thing to the people
government should proper use the amount they get from
t a x , i m p r o v e t h e 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 benefit from those work

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It should be possible for the authorities, without undue delay, to revise

the tax s t r u c t u r e , b o t h w i t h r e s p e c t t o i t s c o v e r a g e a n d
r a t e s , t o s u i t t h e c h a n g i n g 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 discourages to give their tax. Again to the some extent there
are also people false. Our country's big giant corporation they also evade tax, it is a
cumulative problem 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.

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CONCLUDING REMARKS

This article has tried to analyze the existing situation of tax incidence of income taxation
in Bangladesh. Like many other developing countries, the administration of income
taxation in Bangladesh is very poor. There is rampant evasion and allegation of
corruption is widespread. We should understand the fact that any tax reform must go
hand in hand with cutting wasteful government consumption; so that taxpayers do not
feel they are sitting ducks for the exchequer to rip them off. Thus the government must
be very cautious in taxing people so that the burden of taxes could be justified.

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Daily Star, July 2010
4. A Panel Study on Tax Effort and Tax Buoyancy with Special Reference to
Bangladesh, Lutfunnahar Begum, Policy Analysis Unit Bangladesh Bank,
Working Paper Series: WP0715, June 2007
5. Fahmida Khatun, Meeting the Major Targets, Forum, A monthly publication of
Daily Star, July 2010
6. Bangladesh an Agenda for Tax Reform: Vol.3: Direct Taxation: Policy and
Administration, World Bank 1989
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Government Tax Loss: An Analysis, Issue: 24, BIDS, Dhaka
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405.pdf
10. Tapan K Sarker, incidence of income taxation in Bangladesh,
http://unpan1.un.org/intradoc/groups/public/documents/UNPAN/UNPAN014
405.pdf