Taxation Policy Framework in Bangladesh and Australia: A Comparative Analysis

Running head: TAX
Tax
Student’s Name
University Name
Author’s Note

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Table of Contents
Introduction......................................................................................................................................3
Research problem and Research objectives.....................................................................................3
Research Objectives.........................................................................................................................5
Literature Review............................................................................................................................5
Tax administration in Bangladesh................................................................................................5
Narrowing of tax base, a similar problem in Australia................................................................7
Primary policy reforms and their impacts....................................................................................8
Bangladesh...............................................................................................................................8
Australia.................................................................................................................................10
Research Methodology..................................................................................................................13
Research Design.........................................................................................................................13
Research Approach....................................................................................................................13
Kinds of research data................................................................................................................14
Data Collection Methods...........................................................................................................15
Sampling techniques..................................................................................................................15
Sample size................................................................................................................................16
Data Analysis.............................................................................................................................16
Research Ethics..........................................................................................................................16
Reference List................................................................................................................................17

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Introduction
In this research study an in depth analysis of the taxation system of Australia and
Bangladesh has been conducted. The rationale of this research paper rests upon analysing the
taxation policy Framework that has been implemented in the two countries of Bangladesh and
Australia and parallel analysing the efficiency rate of the taxation policy framework. In the light
of this analysis the areas where for the development are required in the taxation framework of the
two countries are analysed by the researcher in this research study. In the first part of this
research paper the research problem has been cited clearly as in why the research in stores in this
topic and following that the research objectives having clearly mentioned based upon which the
literature review has been conducted by the researcher in the next part of this research paper. The
next chapter of this research study is the Research Design and methodology. Research
methodology section, the research approach comma types of research data, methods of research
Data Collection as well as the sample size and sampling technique of this research paper have
been discussed in detail.
Research problem and Research objectives
As an emerging and developing country, Bangladesh has the commitment of augmenting
revenue as well as achieving a fiscal discipline vision eye to increase their self-Reliance. There is
an influence of the external environment on the tax performance of the country and there has
been a change in the text performance owing to this influence and as an outcome in the country
has become more integrated with global economy. Changes taking place since 1990s. This
research study AIMS at exploring the latest improvements in the tax administration of the
countries along with the pragmatic policy initiatives that resulted in the modest improvement of
the tax GDP ratio lately. However research has also been conducted in this research study in

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order to assess why the performance of the country is still unsatisfactory compared to the
neighbouring as well as other developing countries who are belonging to a similar stage in terms
of economic development.
Narrow tax base, administrative inefficiencies as well as widespread exemptions are the
main responsible factors that leads to a low tax to GDP ratio in the country of Bangladesh
compared to her neighbouring as well as comparator countries. Hence in the light of the
aforesaid, this research study will am to explore the reasons because of which tax reforms have
not taken place over the last decades at a scale in which it was supposed to be and also explore
why the taxation policy could not bring about significant changes in the tax efficiency of
Bangladesh and hence enhance their productivity.
The taxation policy and the tax system of Australia is also analyse and evaluate it in the
course of this research study. Based on that a comparative analysis has been done between the
taxation policies of the two countries. The taxation trends Australia is also enough to send large
warning to the Australian government. The tax base overlay is gradually narrowing and this is
happening at a time when spending means on areas like pensions as well as Healthcare are
growing gradually
Unless some drastic changes implemented the Government of Australia will be employed
to cut spending on services as well as benefits what is its ability to deliver a surplus consistently
will be severely affected. This is the main problem that will be explored in terms of the
Australian taxation system in this research study. The immediate reasons for disturbing of the tax
base is a mixture of policy, politics along with Lifestyle Trends of the Australian. Taxes in
Australia come primarily from three sectors, namely labour, consumption and capital. As, Islam
et al. (2017) states, since the year 2001-02 GST had been effective and since that time the

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parliamentary budget office found that collection of taxes from all the above stated three
categories Has Fallen largely where the majority of fall has been in the context of consumption.
Off the consumption Texas major drop has been accounted due to a subtle reduction in the
amount of fuel excise. As Rahman and Kashem (2017), observe, the taxation after the reduction
in fuel excise has being collected at a rate lower than 0. 6 % of the GDP.
Research Objectives
 To analyse the external influences acting on the text performance of Bangladesh and
Australia
 To discuss the pragmatic policy initiatives as well as policy changes that has affected the
tax GDP ratio after the implementation of the GDP scheme in the two countries
 To explode the areas where the text performance of the two countries can be elevated
 To explode the reasons behind narrowing of the tax base in Australia and Bangladesh
Literature Review
Tax administration in Bangladesh
The tax revenue share is higher than four fifth of entire revenue. In the country of
Bangladesh, Sarker (2015), states that from an overall revenue, the percentage of tax revenue lies
from 80.63 % to 84.88% and this rate has been constant between the financial year 2005 06 and
the financial year 2014-15. However, living alone the average growth percentage in the time
period between financial years 2011-12 to financial year 2014-15, tax revenue share increased
from 80. 96% to 84.88%. In the same time period the non-tax revenues has also decreased
accordingly.