Income Tax

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Income Tax Law Income Tax Law and the National Budget 2010-2011 Md. Abdur Rashid, FCMA B.Com. (Hons.), M.Com., DAIBB, LLB, FCMA Income Tax Law explain changes in tax struc-ure of an economy over time under t the impact of economic development and of political and social factors. Tax structure is affected by economic development in three ways: (a) tax base undergoes a change as the develop- ental process m proceeds; (b) change in the tax base brings about changes in the revenue system: and (c) economic development leads to changes in the objectives of tax policy. Bangladesh Government collects taxes on account of custom duty, sales tax, value added taxes, excise duty, cess, fees, fines, penalties, income tax, advalorem duty, etc. It…show more content…
In modern times, the aim of public finance is not merely to raise sufficient financial resources for meeting administrative expenses, for maintenance of law and order and to protect the country from foreign aggression. On the other hand, the sphere of public finance has been very much extended. It is now considered a powerful instrument of important economic and social objectives. The most important objective before these countries is to accelerate their economic growth through mobilizing internal resources. The under-developed countries, like Bangladesh, are caught up in the vicious circle of poverty. Consequently, such countries are not able to save much and whether individual savings or collective savings are only a small fraction of their national income. This means that a much greater tax effort is called for to raise country’s growth rate to a reasonable level. Since private savings and capital formation are meager in Bangladesh, the responsibility of resource mobilization for economic growth falls on the State. That is why the role of public finance in developing countries is very important. For accelerating economic growth, the government has to adopt a tax policy which may raise the rates of saving and capital formation in the country. Since private investment is not adequate for the purpose, the government has to make up the deficiency of private investment by increasing public investment and for that purpose raises resources through taxation. There are

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