Evolution of Income Tax in Bangladesh -Kazi Nadim Modern state mechanism is smoothly running on the wheel of modernized taxation system. The modern taxation system had been spread by the English during the post industrial revolution in Europe. After establishing it at their own country they introduced it gradually to the captured colony afterwards. Through a long evolution the taxation department has got the present picture. So in England we can find a balanced and continuous developed taxation infrastructure rather than other countries of the world. In England, direct taxation is being practiced through a concrete accounting method and the administration and all other requisite information is being flowed over computerized on line system. Every tax payers is allotted a tax payer’s identification code and through round the year taxes are deducted at source from assessee’s financial transaction in all most cases. During the stipulated time of submission of income tax return the assessee makes contact with the tax solicitor who is a Chartered Accountant or a tax practitioner license holder. The assessee produces evidences to the solicitor and he makes a proper account and balance sheet with the help of submitted documents, bank a/c. statements etc. The income tax return are being submitted to the concerned income tax department directly at the proper time or through on line system. After verification of submitted return and accounts and the other relevant documents, the concerned taxes department accepted the same without any question or if they find any discrepancy, they issue letter or notices to the solicitor of the assessee. After having proper hearing the concern income tax office complete assessment for the particular assessment year an issue a demand notice which reflects the imposition of tax or refund. The total procedure is completed within a very short period which is being possible at the dynamism and developed electronic system. And stable tax culture has been developed not only in England but also all over Europe and other part of First world. To say the true, the Governments of those countries stands on the proper flow of taxation where income tax is one of the vital part. The countries of the European community are also practiced income tax in so manner stated above. In case of Russia and the former Socialist countries have framed their taxes departments in a bit different way as they have got their legacy of socialism. In their taxation system they introduced the conception of equity. Income tax nourishes the financial organ, also minimize the difference of the prevailing classes as well. India has got the income tax law in the year 1922 by the then British Government. At the early period income tax was introduced at a very particular developed areas and solvent classes of that period gradually people became accustomed with it. Years passed away. Millions tons of water flowed away through the river Gangas. The Indo-Pak-Bangla sub-continent divided into three parts through all the years and they bore the legacy of same heritage of income tax in this area. During the eight decades, many amendments have been drawn to make the income tax laws updated. But the basic structure is remaining the same. After colonial regime over, the role of income tax in the total national revenue has been increased at a remarkable rate. The tax payers are also being conscious about their duties and responsibilities of payment of tax regularly. As the cold war was over, a new militant & economic polarization has been framed all over the world, every state is facing the challenge of free market economy, the role of income tax has become ever important now-a-days. Every independent state of III world has got no other alternative other than depend on its own internal resources. In this race Bangladesh is legged behind Pakistan and India and similar economy. India has attained independence more than half a century back. All these years after independence they have succeed ten 5-years plan. They have developed their tax infrastructure and mould up the tax culture among the greater tax payers. As a result income tax is playing a good role in the gigantic Indian economy. Pakistan is also successfully following the footprint of India. It is accepted that the least developed country like Bangladesh will cut a good figure on the high way of challenging development in the year to come. British period Income tax practice in Bangladesh is a continuation of I.T. Practice of the then British colonial administration which was introduced in the year 1922. During the British period the people of this sub-continent for the first time, got the conception and experience of Income tax. Under the long colonial reign there developed a white color elite class in this area who became financially solvent and stable possessing newly setup industries and business of different types and categories. In 1922, when the first world-war was over, socialist revolution was successful in the Soviet Union in 1917 and the world entered into a new economic arena, the direct taxation- Income tax was imposed on the aforesaid class of this sub-continent. The main objective of this imposition was in a view to make up huge economic deficit caused by the First world-war. The British Government partially attained their goal. Since then Income Tax is under practice and its role gradually increased day to day, year to year. Post Colonial Age – Pakistan Period Pakistan attained its independence in the year 1947. Newly established state, Pakistan received the legacy of the Tax Administration of precede British colony. Pakistan Government required to reform and expand it for the sake of enriching the contribution to their National Budget. They did so, formed two tax Commissionerate , one at west Pakistan and the other at east Pakistan . The tax payers of this area have been accustomed in the mean time to deal with it, i.e. practicing income tax. It is needless to mention here that the newly independent nation extended its co-operative hands to build up the economy of own motherland. Income tax played a remarkable role in the internal resource gathering. As a result, the new state achieved the Five years plan successful and advanced to the Future prosperity. Bangladesh period Bangladesh become independent after a bloody war in 1971, Millions of people laid their lives to attain the independence of their motherland. Their a few independent in the world which cost such supreme sacrifice. For this reason aspiration of the people of this land increased to a very high range. They expected to achieve all human necessary objectives from the state overnight. But the state had its limitation. It could not full-fill the demands of the people according to their expectation. Yet, the then Government and Governments afterwards properly understood that only and stable taxation system can provide the state machinery to serve the people’s needful demands. So being one of the important organs of the National Board of Revenue ( N.B.R.) , the role of income tax gradually becoming valuable to the entire internal revenue system.
Posted on: Sun, 21 Dec 2014 18:57:50 +0000
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