International Journal of Business and Economics Research

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GDP Growth and Indirect Taxation in Bangladesh: Related Issues, Consequences and Expectation

Received: 10 July 2019    Accepted: 06 August 2019    Published: 20 August 2019
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Abstract

This is an empirical study that takes GDP growth and indirect tax in Bangladesh as its cynosure. It examines the relationship between the growth rate of Gross Domestic Product (GDP) and the indirect-tax for the policy issues regarding long-term macroeconomic stability as well as economic development of Bangladesh. This paper focuses on the impact of indirect taxation on GDP and demonstrates the influence that taxation has on the tax paying individual and business firms irrespective of economic scale. To analyze the relationship between GDP and indirect tax, this research incorporated econometric models for time series data of Bangladesh over a period of 43 years. The results show, if the Government in the long run increases the collection of indirect tax revenue by one percent (USD 167.511 million) then the GDP will decrease to a 0.96 percent (USD 2,572 million). The study concludes that the stability of economic growth can be achieved through a reformed tax policy on the basis of the country’s socioeconomic strength and the canons of taxation.

DOI 10.11648/j.ijber.20190805.15
Published in International Journal of Business and Economics Research (Volume 8, Issue 5, October 2019)
Page(s) 286-296
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

GDP, Economic Growth, Econometric Methods, Indirect Tax, Social Justice and Tax Reform

References
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[5] Household Income and Expenditure Survey (HIES) (2016). Pleminary Report, Bangladesh Bureau of Statistics, Statistics and Information Division (SID), Ministry of planning, Bangladesh, 40-42. https://www.academia.edu/37874731/Preliminary_Report_on_Household_Income_and_Expenditure_Survey_2016_BANGLADESH_BUREAU_OF_STATISTICS_BBS_STATISTICS_AND_INFORMATICS_DIVISION_SID
[6] Keynes J M (1936). The General Theory of Employment, Interest and Money. London, Macmillan (reprinted 2007).
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[8] Nadeem I, Muhammad F A, Suliman S (2015). Empirical Analysis of Tax Revenues and Its Impact on Economic Growth of Pakistan. Journal of Economics and Sustainable Development, 6 (1): 110-118. https://pdfs.semanticscholar.org/fdc0/d05f20260d533f05e5af99892ced5082286c.pdf
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Author Information
  • Department of Economics, National University, Gazipur, Bangladesh

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  • APA Style

    Aoulad Hosen. (2019). GDP Growth and Indirect Taxation in Bangladesh: Related Issues, Consequences and Expectation. International Journal of Business and Economics Research, 8(5), 286-296. https://doi.org/10.11648/j.ijber.20190805.15

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    ACS Style

    Aoulad Hosen. GDP Growth and Indirect Taxation in Bangladesh: Related Issues, Consequences and Expectation. Int. J. Bus. Econ. Res. 2019, 8(5), 286-296. doi: 10.11648/j.ijber.20190805.15

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    AMA Style

    Aoulad Hosen. GDP Growth and Indirect Taxation in Bangladesh: Related Issues, Consequences and Expectation. Int J Bus Econ Res. 2019;8(5):286-296. doi: 10.11648/j.ijber.20190805.15

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  • @article{10.11648/j.ijber.20190805.15,
      author = {Aoulad Hosen},
      title = {GDP Growth and Indirect Taxation in Bangladesh: Related Issues, Consequences and Expectation},
      journal = {International Journal of Business and Economics Research},
      volume = {8},
      number = {5},
      pages = {286-296},
      doi = {10.11648/j.ijber.20190805.15},
      url = {https://doi.org/10.11648/j.ijber.20190805.15},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijber.20190805.15},
      abstract = {This is an empirical study that takes GDP growth and indirect tax in Bangladesh as its cynosure. It examines the relationship between the growth rate of Gross Domestic Product (GDP) and the indirect-tax for the policy issues regarding long-term macroeconomic stability as well as economic development of Bangladesh. This paper focuses on the impact of indirect taxation on GDP and demonstrates the influence that taxation has on the tax paying individual and business firms irrespective of economic scale. To analyze the relationship between GDP and indirect tax, this research incorporated econometric models for time series data of Bangladesh over a period of 43 years. The results show, if the Government in the long run increases the collection of indirect tax revenue by one percent (USD 167.511 million) then the GDP will decrease to a 0.96 percent (USD 2,572 million). The study concludes that the stability of economic growth can be achieved through a reformed tax policy on the basis of the country’s socioeconomic strength and the canons of taxation.},
     year = {2019}
    }
    

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    T1  - GDP Growth and Indirect Taxation in Bangladesh: Related Issues, Consequences and Expectation
    AU  - Aoulad Hosen
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    JO  - International Journal of Business and Economics Research
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    UR  - https://doi.org/10.11648/j.ijber.20190805.15
    AB  - This is an empirical study that takes GDP growth and indirect tax in Bangladesh as its cynosure. It examines the relationship between the growth rate of Gross Domestic Product (GDP) and the indirect-tax for the policy issues regarding long-term macroeconomic stability as well as economic development of Bangladesh. This paper focuses on the impact of indirect taxation on GDP and demonstrates the influence that taxation has on the tax paying individual and business firms irrespective of economic scale. To analyze the relationship between GDP and indirect tax, this research incorporated econometric models for time series data of Bangladesh over a period of 43 years. The results show, if the Government in the long run increases the collection of indirect tax revenue by one percent (USD 167.511 million) then the GDP will decrease to a 0.96 percent (USD 2,572 million). The study concludes that the stability of economic growth can be achieved through a reformed tax policy on the basis of the country’s socioeconomic strength and the canons of taxation.
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