With the Implementation of the VAT Law Postponed, What Additional Domestic Revenue Mobilization Measures Could Be Considered? : Bangladesh Policy Note

With the Implementation of the VAT Law Postponed, What Additional Domestic Revenue Mobilization Measures Could Be Considered? : Bangladesh Policy Note

The postponement of 2012 VAT Law implementation means that the higher tax revenues expected from the measure will be delayed, and additional sources of revenue need to be considered. Model simulations suggest that implementation of the VAT Law starting July 1, 2017 at the originally proposed rate of 15 percent would have yielded additional tax revenue of about 1 percent of GDP in FY2018, and 0.8 percent of GDP in FY2019. Several measures could be considered to make up this short-fall. Automation and process simplification could bring additional tax revenues ranging from 0.3 to 0.7 percent of GDP in FY2018. There is substantial scope for efficiency gains in shifting from a type-of-tax towards a function-based tax administration, facilitating compliance. Carbon taxes could generate resources equivalent to 1 percent of GDP, and tobacco taxes could raise a further 1 to 2 percent of GDP. Rationalizing tax incentives and exemptions can also generate more revenue. The proposed administrative measures, including expanding tax withholding mechanisms, would not require legislative changes and could be implemented in the short term, boosting revenue during the current fiscal year (FY2018). The other tax policy measures could be considered for implementation in the medium term and would require corresponding legislative initiatives.

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Bibliographic Details
Main Author: World Bank
Format: Policy Note biblioteca
Language:English
Published: World Bank, Washington, DC 2017-07-22
Subjects:VAT REVENUE, TAX REVENUE, VALUE ADDED TAX, REVENUE COLLECTION, FISCAL POLICY, BUSINESS ENVIRONMENT, TAX ADMINISTRATION, CARBON TAX, TOBACCO TAX,
Online Access:http://documents.worldbank.org/curated/en/801861535717671167/Bangladesh-Policy-Note
http://hdl.handle.net/10986/30406
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spelling dig-okr-10986304062021-05-25T09:17:56Z With the Implementation of the VAT Law Postponed, What Additional Domestic Revenue Mobilization Measures Could Be Considered? : Bangladesh Policy Note World Bank VAT REVENUE TAX REVENUE VALUE ADDED TAX REVENUE COLLECTION FISCAL POLICY BUSINESS ENVIRONMENT TAX ADMINISTRATION CARBON TAX TOBACCO TAX The postponement of 2012 VAT Law implementation means that the higher tax revenues expected from the measure will be delayed, and additional sources of revenue need to be considered. Model simulations suggest that implementation of the VAT Law starting July 1, 2017 at the originally proposed rate of 15 percent would have yielded additional tax revenue of about 1 percent of GDP in FY2018, and 0.8 percent of GDP in FY2019. Several measures could be considered to make up this short-fall. Automation and process simplification could bring additional tax revenues ranging from 0.3 to 0.7 percent of GDP in FY2018. There is substantial scope for efficiency gains in shifting from a type-of-tax towards a function-based tax administration, facilitating compliance. Carbon taxes could generate resources equivalent to 1 percent of GDP, and tobacco taxes could raise a further 1 to 2 percent of GDP. Rationalizing tax incentives and exemptions can also generate more revenue. The proposed administrative measures, including expanding tax withholding mechanisms, would not require legislative changes and could be implemented in the short term, boosting revenue during the current fiscal year (FY2018). The other tax policy measures could be considered for implementation in the medium term and would require corresponding legislative initiatives. 2018-09-11T20:20:54Z 2018-09-11T20:20:54Z 2017-07-22 Policy Note http://documents.worldbank.org/curated/en/801861535717671167/Bangladesh-Policy-Note http://hdl.handle.net/10986/30406 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Policy Notes Economic & Sector Work South Asia Bangladesh
institution Banco Mundial
collection DSpace
country Estados Unidos
countrycode US
component Bibliográfico
access En linea
databasecode dig-okr
tag biblioteca
region America del Norte
libraryname Biblioteca del Banco Mundial
language English
topic VAT REVENUE
TAX REVENUE
VALUE ADDED TAX
REVENUE COLLECTION
FISCAL POLICY
BUSINESS ENVIRONMENT
TAX ADMINISTRATION
CARBON TAX
TOBACCO TAX
VAT REVENUE
TAX REVENUE
VALUE ADDED TAX
REVENUE COLLECTION
FISCAL POLICY
BUSINESS ENVIRONMENT
TAX ADMINISTRATION
CARBON TAX
TOBACCO TAX
spellingShingle VAT REVENUE
TAX REVENUE
VALUE ADDED TAX
REVENUE COLLECTION
FISCAL POLICY
BUSINESS ENVIRONMENT
TAX ADMINISTRATION
CARBON TAX
TOBACCO TAX
VAT REVENUE
TAX REVENUE
VALUE ADDED TAX
REVENUE COLLECTION
FISCAL POLICY
BUSINESS ENVIRONMENT
TAX ADMINISTRATION
CARBON TAX
TOBACCO TAX
World Bank
With the Implementation of the VAT Law Postponed, What Additional Domestic Revenue Mobilization Measures Could Be Considered? : Bangladesh Policy Note
description The postponement of 2012 VAT Law implementation means that the higher tax revenues expected from the measure will be delayed, and additional sources of revenue need to be considered. Model simulations suggest that implementation of the VAT Law starting July 1, 2017 at the originally proposed rate of 15 percent would have yielded additional tax revenue of about 1 percent of GDP in FY2018, and 0.8 percent of GDP in FY2019. Several measures could be considered to make up this short-fall. Automation and process simplification could bring additional tax revenues ranging from 0.3 to 0.7 percent of GDP in FY2018. There is substantial scope for efficiency gains in shifting from a type-of-tax towards a function-based tax administration, facilitating compliance. Carbon taxes could generate resources equivalent to 1 percent of GDP, and tobacco taxes could raise a further 1 to 2 percent of GDP. Rationalizing tax incentives and exemptions can also generate more revenue. The proposed administrative measures, including expanding tax withholding mechanisms, would not require legislative changes and could be implemented in the short term, boosting revenue during the current fiscal year (FY2018). The other tax policy measures could be considered for implementation in the medium term and would require corresponding legislative initiatives.
format Policy Note
topic_facet VAT REVENUE
TAX REVENUE
VALUE ADDED TAX
REVENUE COLLECTION
FISCAL POLICY
BUSINESS ENVIRONMENT
TAX ADMINISTRATION
CARBON TAX
TOBACCO TAX
author World Bank
author_facet World Bank
author_sort World Bank
title With the Implementation of the VAT Law Postponed, What Additional Domestic Revenue Mobilization Measures Could Be Considered? : Bangladesh Policy Note
title_short With the Implementation of the VAT Law Postponed, What Additional Domestic Revenue Mobilization Measures Could Be Considered? : Bangladesh Policy Note
title_full With the Implementation of the VAT Law Postponed, What Additional Domestic Revenue Mobilization Measures Could Be Considered? : Bangladesh Policy Note
title_fullStr With the Implementation of the VAT Law Postponed, What Additional Domestic Revenue Mobilization Measures Could Be Considered? : Bangladesh Policy Note
title_full_unstemmed With the Implementation of the VAT Law Postponed, What Additional Domestic Revenue Mobilization Measures Could Be Considered? : Bangladesh Policy Note
title_sort with the implementation of the vat law postponed, what additional domestic revenue mobilization measures could be considered? : bangladesh policy note
publisher World Bank, Washington, DC
publishDate 2017-07-22
url http://documents.worldbank.org/curated/en/801861535717671167/Bangladesh-Policy-Note
http://hdl.handle.net/10986/30406
work_keys_str_mv AT worldbank withtheimplementationofthevatlawpostponedwhatadditionaldomesticrevenuemobilizationmeasurescouldbeconsideredbangladeshpolicynote
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