An internship report on the impact of indirect tax (Value Added Tax) on the economic development of Bangladesh

Abstract

The People's Republic of Bangladesh's government decided to switch out the antiquated general sales tax for a value-added tax during the 2010–2011 fiscal year. This decision was made in an effort to update the tax code. To update the tax system for the modern period, this was done. This was carried out to boost revenue collection for the government and improve funding for infrastructure and other forms of economic expansion. The intention was to accelerate global economic growth. Increasing the overall amount of money that was available for investment was the aim of this project. This analysis will include a practical analysis and an examination of the connection between Bangladesh's economic growth and the value-added tax. This investigation's goal is to ascertain whether there is a connection between these variables. The empirical results support the idea that Value-Added Tax, which is measured by Gross Domestic Product, has a significant positive impact on Bangladesh's economic expansion. The findings lead to the conclusion that the Value-Added Tax is calculated based on Gross Domestic Product, which supports this conclusion. Furthermore, the value-added tax, or VAT as it is more often known, has a statistically significant beneficial impact on total tax revenue as well as total revenue, both of which affect Bangladesh's GDP growth. This effect is advantageous. The study's conclusions indicate that the value-added tax contributes favorably to the nation's rate of economic growth as indicated by GDP for the relevant time periods. This conclusion is based on taking into account all eras. The results of this study are consistent with those of an earlier study that showed a value-added tax had a significant positive impact on economic growth in a number of different countries.