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”.

Assignment
On
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
On
Taxation

Prepared For

Mohammad Faridul Alam

Senior Lecturer & Assistant Proctor
Department of Business Administration
East 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 Alam
Senior Lecturer & Assistant Proctor
Department of Business Administration
East West University.

Prepared By
Md. Yassin Hossain 2007-1-10-115
Section: 1

Department of Business Administration