Professional Documents
Culture Documents
EM-518
Submitted to:
Dr. Shaker Ahmed
Professor
Department of Management Studies
Faculty of Business Studies
University of Dhaka
Submitted by:
Business Research 1
Title of the study:
1.1 Background
Bangladesh introduced the Value Added Tax (VAT) in 1991 by replacing the age-
old excise duty on the domestically produced goods and services and sales tax at the
importation stage. The study of the practice and problems of the VAT in different
countries shows that the VAT has been introduced not only because of its revenue raising
potentials but also because of its simplicity, effectiveness and efficiency, transparency,
equity, and progressiveness all of which complement the establishment of good
governance.
The revenue-GDP ratio in Bangladesh is one of the lowest (8.5%) in the world. Of
all the tax revenues, VAT at present is the single largest contributor to GDP. It has been
found that VAT funds the government expenditure more than any other tax. In the very
first year of its introduction, VAT yielded a reve25.43% more than the previous year.
Starting from 3190 crore taka in FY 1991-92, VAT yielded 28,657 crore taka in FY
2008-09.VAT now accounts for 4.3% of GDP while the total contribution of tax revenue
to GDP is 8.36%. But still different stake holders raise the questions of efficiency and
effectiveness of the VAT system in Bangladesh. By efficiency and effectiveness we mean
“processes and institutions to produce results that meet the needs of society
(effectiveness) while making the best use of resources at their disposal (efficiency).” No
such study has so far been undertaken.
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1.4 Methodology
i. Source of data:
Mainly secondary data- published VAT legislations and statistics from the
National Board of Revenue (NBR) as well as from Bureau of Statistics will be
used.
For assessing the stakeholders’ perception of Bangladesh VAT as regards its
efficiency and effectiveness primary data will be gathered from Bangladeshi
stakeholders like the taxpayers and general consumers.
ii. Sampling
The total sample size will be 100 (by choosing some strata (e.g. - from
consumers, from taxpayers, from the high dense and convenience place). Of
them, 50% will be from the taxpayers segment and the remaining 50% from
general consumers.
iv. Questionnaire
v. Data Collection
Researchers (members of the group) themselves will collect data the target
population staying in Dhaka and its neighborhood.
Appropriate statistical tools like tables, graphs and charts will be used to
process and analyze data and to arrive at the conclusion of the study.
1.5 Limitations
Business Research 3
needs to be gathered from a much bigger population. But due to time and resource
constraints, the sample size has been kept small.
1.6 Conclusion
Based on the findings and their interpretation, a report containing recommendations will
be prepared within the given time limit and presented to the concerned audience. #
Business Research 4