Essay on Gift Tax in Bangladesh

3638 Words Sep 25th, 2012 15 Pages
Abstract
This report highlights on our practical experience of mechanism of collection of gift tax by National Board of Revenue (NBR).
To complete the report successfully, we tried to gather information from News Paper, web sites. But the NBR does not provide information in the web site directly and even it does not publish total process to collect taxes from different sector. For this reason we had to visit NBR several times and thus we were successful to collect information about gift tax in Bangladesh.
To complete this report, we have gained practical knowledge about various type of Tax System. We also learned the difference sources of taxes and how successful NBR is to collect these taxes. We also got a clear view about the trend
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People pay taxes to the Government on the basis of what they earn, what they own and what they purchase.
A tax is a compulsory payment levied on the persons or companies to meet the expenditure incurred on conferring common benefits upon the people of a country.

Two aspects of taxes follow from this definition: * A tax is a compulsory payment and no one can refuse to pay it. * Proceed from taxes are used for common benefits or general purposes of the state.

Classification of Tax System
Classification of Tax System

Multiple Tax
Single Tax

Single Tax: Only tax for everybody. Single tax is poll tax or head tax or adolescent tax, which is impose on a person only because he is in society.
Multiple Tax: A system under which different types of taxes are levied by the government according to suitability. For example- Income Tax, VAT etc.

Types of Taxation
Types of taxation

1) Progressive Tax 2) Regressive Tax 3) Proportional Tax

1) Direct Tax
2) Indirect Tax

1) Direct Tax: The term direct tax generally means a tax paid directly to the government by the persons on whom it is imposed. e.g. Income Tax, Marriage Tax etc. 2) Indirect Tax: In the colloquial sense, an indirect tax (such as sales tax, a specific tax [a tax per unit], value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax

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