Value Added Tax (VAT) in Nepal: A Critical Assessment of Its Performance (original) (raw)

Reforming Value Added Tax System in Developing World: the Case of Nepal

Business and Management Studies, 2016

Value Added Tax (VAT) has become an integral part of domestic tax reforms in many developing countries. Taking the case of Nepal, VAT associates a number of refunds to different private sector activities for promoting investment in higher growth and export potential sectors. Total refund, more specifically, export refund has a significant positive impact on the level of GDP. Furthermore, non-agricultural GDP has strong positive influence to VAT C-efficiency ratio. Likewise, higher the VAT gap, lower is the C-efficiency ratio. If C-efficiency is improved coupled with higher compliance, the capability of the government is strengthened in domestic revenue generation.

Value Added tax (VAT) -in View of Bangladesh

19999, 2019

This paper represents an overview of Value Added Tax (VAT) in Bangladesh. It depicts the basic features of Value Added Tax and its implication, and importance in the growing economy of Bangladesh. Bangladesh faces many problems in raising sufficient tax revenues to fund its economic and social development. To address this problem and to improve economic efficiency and growth, a major tax reform program was initiated in 1991 which centered on the introduction of a value-added tax (VAT) to replace a range of narrowly-based consumption taxes. This study works as a linkage between theory and practice on Value Added Tax. The article represents the social and economical development of the country with the basic awareness which is going at a steady pace among the people and the organization considering it as a key to further economical development. The awareness of Value Added Tax (VAT) is not very old, but still within a short span of time it has shown a remarkable change in the corporate sector and the economy of the country. It has developed a complete sense of care and responsibility towards the country and the welfare of the people.

Study on the Value-Added Tax and Its Efficiency in India

Journal of Advances and Scholarly Researches in Allied Education, 2018

This paper analyses esteem included tax (VAT), with uncommon accentuation on proficiency in the EU-28 Member States and Turkey, over the period from 2009 to 2013. From the consequences of the investigation, we presumed that, the most noteworthy productivity proportion (50.8) was recorded in Croatia in 2013. This demonstrates Croatia's worth included tax incomes as level of total national output in the state spending plan were exceptionally high (12.7) in contrast with Turkey's (9.0) in 2013. In that capacity, VAT is one of the most significant taxes in the EU-28 Member States and numerous nations around the world, similar to Turkey. The present VAT system in EU-28 Member States and Turkey is very perplexing for the developing number of organizations working cross-fringe. To expand speculation, aggressiveness and development, an activity plan on VAT is proposed for the formation of a solitary VAT territory. The VAT system should be increasingly effective and less complex for organizations to utilize.

The effect of value added taxes on the Indian society

Value added tax (VAT) is a type of indirect tax that is imposed on goods and services. Sometimes, when the government operates on a budget surplus or wants to increase its revenue in order to finance its budget deficit. A question that arises is whether value added tax has been a boon or misery for a developing country like India. Around 136 countries in Asia have recognized the importance of value added tax. In one of the most large scale reforms of the country's public finances in over the past 50 years, India has finally agreed the launch of its much delayed value added tax from 1st April, 2005 at a rate of 12.5%. The tax rate is fixed by meeting of different state level Finance Minister, in New Delhi, designed to make accounting more transparent, to cut short trade barriers and boost tax revenues. According to Chanakya, " A government should tax its people like a shepherd shears a flock or a bee gets nectar from a flower ". The tax is levied not only on products but services that is the source of revenue for the government to plan for development activities in the country. Since, India is a developing country, the main source for revenue is generated through tax levied on the individual on the purchase of goods or services. The government imposes taxes and duty charges on the fellow people for fulfilling the infrastructural, technological, entrepreneurial demand of the country. Whether the imposition of high tax on the society is favorable or unfavorable in the present scenario to meet the technological and infrastructural demand? It has been identified that rural people are charged more tax than urban people due to subsidized rate provided to them in food products, transportation, electricity, water etc. for these facilities they are charged indirectly from their source of income like agricultural and allied activities. The question that arises is: do value added taxes promote prosperity and well being for the common men? VAT is omnipresent in all goods and services provided to the consumer. The paper aims at presenting the importance of value added tax in the Indian society, its impact and the future prospect for product and service industry in India. The data collected is secondary based from the governmental publications and standard for chartered accountants.

Deduction and adjustment of input VAT as regards economic and non-economic use of goods and services

Studia Prawno-Ekonomiczne

Background: The aim of the study was to analyse EU legislation and case-law on the deduction and adjustment of input VAT regarding economic and non-economic use of goods and services. This issue has been the focus of much controversy in recent years and has been the subject of several rulings by the Court of Justice of the European Union, the VAT Committee discussions, as well as the rulings of administrative courts and the interpretations of the Minister of Finance/ Director of National Revenue Information in Poland. The study conducted a comprehensive legal analysis of the issue, at the same time drawing attention to the doubts that still exist despite the CJEU judgments. Research purpose: The aim of the study was not only to assess the relevant legislation or its interpretation, but above all to draw attention to the need to fill the legislative gap in the area studied, which has led, and may continue to lead, to non-uniform application of VAT rules in the EU Member States. Methods: The study was carried out predominantly using the empirical-dogmatic method, backed by a historical method and comparative method. Conclusions: Significant differences between the Member States of the European Union in terms of the deduction and the adjustment of input VAT regarding goods and services used for mixed purpose were identified. Despite the recent CJEU judgments, there is still a relatively large margin for interpretation, which may result in different legal and tax positions of entities in the EU Member States. There is therefore a need to adopt the EU legislation in this area. 1

Global trends and issues in value added taxation

International Tax and Public Finance, 1998

Since the late 1960s, the VAT has become one of the mainstays of the tax systems in over one hundred countries. Apparently, its revenue raising and neutrality properties make it an attractive tax in a rapidly integrating, high-tax world. Following an overview of VATs throughout the world, this article examines various VAT structure and policy issues under the following headings: tax coverage features, tax base aspects, hard-to-tax sectors, rate structure issues, and interjurisdictional coordination problems. It is shown that the normative requirements of a 'good' VAT are often met only in the breach.

VAT Revisited. A New Look at the Value Added Tax in Developing and Transitional Countries

A Report to the Project on Fiscal Reform in Support of …, 2005

The authors are grateful to the sponsors for their support and also, most especially, to the many colleagues both in the international financial agencies and in many national governments who have, over the years, contributed so much to our knowledge of value-added taxation (VAT) in both theory and especially practice. In particular, very useful comments and supplementary materials (often unpublished) bearing on this study were received from participants at workshops held in 2004 and 2005 at USAID and the World Bank, as well as at the first Global Conference on VAT held in Rome in March 2005.