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 star...
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| Format: | Policy Note |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/801861535717671167/Bangladesh-Policy-Note http://hdl.handle.net/10986/30406 |
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okr-10986-304062021-05-25T09:17:56Z 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 |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
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 World Bank With the Implementation of the VAT Law Postponed, What Additional Domestic Revenue Mobilization Measures Could Be Considered? : Bangladesh Policy Note |
| geographic_facet |
South Asia Bangladesh |
| 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 |
| 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 |
2018 |
| url |
http://documents.worldbank.org/curated/en/801861535717671167/Bangladesh-Policy-Note http://hdl.handle.net/10986/30406 |
| _version_ |
1764471923599736832 |