|Posted on May 21, 2011 at 2:05 AM|
Taxes are primary sources if governmental revenue in Bangladesh. Taxation means imposition of a non-penal yet compulsory levy for transfer of resources from private to public sector, imposed by the public representative based on pre-determined criteria and without reference to any specific commitment, in order to accomplish some nation’s economic and social objective. These are dues that we pay for the privileges of membership in an organized civil society. Tax is imposed in the assessment year based on income year. Tax is a internal revenue, which collected through two types of tax in many countries. Those are direct tax and indirect tax, where direct tax deals with income tax and indirect tax deals with Value Added Tax (VAT) and Custom Duties.
In spite of the structure of taxation and the lack of unwillingness of citizens to fulfilling its citizenry duties, it is indeed very inconvenient task collecting taxes from tax payers in Bangladesh.  Bangladesh inheritances a week economic infrastructure from British era and later from Pakistan ruler although it nit posses a vast amount of natural resources.  These limitations have caused slow growth in production, saving, in capital formulation and in capital investments. Moreover, the economic activities outside the agricultural sector are disjointed and fragmented, which has contributed the problem.
Basics of the Study:
The term ‘tax’ has been derived from the French word ‘taxe’ and etymologically, the Latin word ‘taxare’ is related to the term ‘tax’, which means ‘to change’. Tax is a contribution exacted by the state. It is a non-penal but compulsory and unrequited transfer of resources from the private to the public sector, levied on the basis of predetermined criteria. According to Article 152(1) of the Constitution of Bangladesh, taxation includes the imposition of any tax, rate, duty or import, whether general, local or special, and tax shell be constructed accordingly.
Taxes are the most important source of revenue of the modern governments. It is a compulsory levy, to be paid by the citizens who are liable to pay it, imposed by the government. Many economists like Seligman, Adam Smith, Bastable, Taussig and Dalton hold the unanimous opinion that tax is a compulsory payment to the government by taxpayers without any expectations of some specified return. But essence of the argument is this that the tax payer is not entitled to claim return of his taxes though he may receive benefits of the service which the State provides by means of the taxes collection from him and many other like him.
According to P. E. Taylor, “Taxes are compulsory payment to government without expectation of direct return in benefit to the tax payer.”
According to Dalton, “A tax is a compulsory contribution imposed by a public authority irrespective of the exact amount of service rendered to the tax payer in return and not imposed as a penalty for any legal offence.”
According to Section 2(62) of the ITO 1984, “ ‘tax’ means the income tax payable under the ordinance and includes any additional tax, excess profit tax, penalty, interest, fees or other charges leviable or payable under this ordinance.”
The above definitions make it clear about the tax, that it is a compulsory contribution by the tax payers to the government.