Volume 36, Issue 3, June 2022, Pages 697–705
Mohammad Main Uddin1, Rabiul Islam2, Md. Abdus Sahid3, and Mahmudul Hasan4
1 Department of Accounting, Hajee Mohammad Danesh Science and Technology University, Dinajpur, Bangladesh
2 Department of Accounting and Information Systems, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalganj - 8100, Bangladesh
3 Department of Computer Science and Engineering, Hajee Mohammad Danesh science and Technology University, Dinajpur, Bangladesh
4 Department of Computer Science and Engineering, Hajee Mohammad Danesh science and Technology University, Dinajpur, Bangladesh
Original language: English
Copyright © 2022 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This paper represents an outline of the contribution of Value Added Tax (VAT) in Bangladesh in association with the GDP growth rate, the annual budget amount, and total government revenues from the beginning of vat introduction in Bangladesh. We constructed a correlation matrix using the Pearson and Spearman correlation methods, which was then visualized using a Heatmap to visualize the relationship between the variables. To evaluate the association among the variables, three hypotheses have been set and tested using ANOVA, Pearson correlation, and Spearman correlation. The data set have been developed from secondary sources combing the data of VAT revenues, GDP growth rate, the annual budget amount, and total government revenues from the very beginning of VAT's introduction in Bangladesh (1991-2020) to complete the study and test statistical models. According to our findings, VAT makes a significant contribution to government income generation, resulting in the coverage of budgeted revenues and contributing to consistent GDP growth. VAT, as an indirect tax, is now seen as a powerful fiscal weapon to meet the government's ever-increasing demand for revenues to support all development programs for countries transitioning from least developed to developing. VAT has a strong significant correlation with the annual budget amount, but no positive association with GDP growth rate or total governmental revenues, according to Pearson, Spearman, and ANOVA model findings. VAT can play a vital role in sustaining government internal revenue sources by bordering the basic tax base.
Author Keywords: VAT, GDP growth, annual budget, government revenues, and Bangladesh.
Mohammad Main Uddin1, Rabiul Islam2, Md. Abdus Sahid3, and Mahmudul Hasan4
1 Department of Accounting, Hajee Mohammad Danesh Science and Technology University, Dinajpur, Bangladesh
2 Department of Accounting and Information Systems, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalganj - 8100, Bangladesh
3 Department of Computer Science and Engineering, Hajee Mohammad Danesh science and Technology University, Dinajpur, Bangladesh
4 Department of Computer Science and Engineering, Hajee Mohammad Danesh science and Technology University, Dinajpur, Bangladesh
Original language: English
Copyright © 2022 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This paper represents an outline of the contribution of Value Added Tax (VAT) in Bangladesh in association with the GDP growth rate, the annual budget amount, and total government revenues from the beginning of vat introduction in Bangladesh. We constructed a correlation matrix using the Pearson and Spearman correlation methods, which was then visualized using a Heatmap to visualize the relationship between the variables. To evaluate the association among the variables, three hypotheses have been set and tested using ANOVA, Pearson correlation, and Spearman correlation. The data set have been developed from secondary sources combing the data of VAT revenues, GDP growth rate, the annual budget amount, and total government revenues from the very beginning of VAT's introduction in Bangladesh (1991-2020) to complete the study and test statistical models. According to our findings, VAT makes a significant contribution to government income generation, resulting in the coverage of budgeted revenues and contributing to consistent GDP growth. VAT, as an indirect tax, is now seen as a powerful fiscal weapon to meet the government's ever-increasing demand for revenues to support all development programs for countries transitioning from least developed to developing. VAT has a strong significant correlation with the annual budget amount, but no positive association with GDP growth rate or total governmental revenues, according to Pearson, Spearman, and ANOVA model findings. VAT can play a vital role in sustaining government internal revenue sources by bordering the basic tax base.
Author Keywords: VAT, GDP growth, annual budget, government revenues, and Bangladesh.
How to Cite this Article
Mohammad Main Uddin, Rabiul Islam, Md. Abdus Sahid, and Mahmudul Hasan, “VAT Role in the Development of Bangladesh: Any Association with GDP Growth Rate, Government Revenues, and Annual Budget,” International Journal of Innovation and Applied Studies, vol. 36, no. 3, pp. 697–705, June 2022.
