GDP Growth and Indirect Taxation in Bangladesh: Related Issues, Consequences and Expectation
International Journal of Business and Economics Research
Volume 8, Issue 5, October 2019, Pages: 286-296
Received: Jul. 10, 2019; Accepted: Aug. 6, 2019; Published: Aug. 20, 2019
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Author
Aoulad Hosen, Department of Economics, National University, Gazipur, Bangladesh
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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.
Keywords
GDP, Economic Growth, Econometric Methods, Indirect Tax, Social Justice and Tax Reform
To cite this article
Aoulad Hosen, GDP Growth and Indirect Taxation in Bangladesh: Related Issues, Consequences and Expectation, International Journal of Business and Economics Research. Vol. 8, No. 5, 2019, pp. 286-296. doi: 10.11648/j.ijber.20190805.15
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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