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Taxation: Md. Kamrul Hasan Shovon

The document discusses taxation and public finance, defining key terms like public revenue, tax revenue, non-tax revenue, taxes, and the purposes and characteristics of taxation. It explains that governments require public revenue to fund obligatory and optional functions, which comes from tax sources like income tax, VAT, and non-tax sources like fees, fines, and grants. The document also outlines the canons of taxation that systems aim to achieve, such as equality, certainty, and productivity.

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Maruf Khan
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38 views

Taxation: Md. Kamrul Hasan Shovon

The document discusses taxation and public finance, defining key terms like public revenue, tax revenue, non-tax revenue, taxes, and the purposes and characteristics of taxation. It explains that governments require public revenue to fund obligatory and optional functions, which comes from tax sources like income tax, VAT, and non-tax sources like fees, fines, and grants. The document also outlines the canons of taxation that systems aim to achieve, such as equality, certainty, and productivity.

Uploaded by

Maruf Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Taxation

Md. Kamrul Hasan Shovon


Assistant Professor

1
Public Finance
 Public finance is a science that deals with the income
and expenditure of public bodies and the government
of a nation.
 The government of a country has to perform two
types of functions-
 Obligatory functions (defense, maintenance of law and order
situation)
 Optional functions (providing facilities to its like
infrastructure, health and environment)

2
Meaning of Public Revenue

 Government need to perform various functions in the


field of political, social & economic activities to
maximize social & economic welfare.
 Government require large amount of resources to
perform these duties and functions.
 These resources are called public revenue.
 Public revenue consists of taxes, fines, fees, gift &
grant

3
Sources of Public Revenue

 There are two major types of public revenue


 Tax revenue
 Non-tax revenue

4
Tax Revenue

 Taxes are compulsory payments to


government without expecting direct benefit
or return by the tax payer.
 Taxes are the first and foremost sources of
public revenue.
 Tax revenue is generated from taxes on
income, profit and capital gains, taxes on
goods services which include value added
tax (VAT) and excise duty.

5
Tax Revenue

 Government collects tax revenue by way of


direct and indirect tax.
 Direct tax includes-
 Corporate tax, personal income tax, capital gain
tax, gift tax and wealth tax
 Indirect tax includes-
 Custom duty, excise duty, service tax

6
Non Tax Revenue

 Non tax revenue is the revenue obtained by


the government from sources other than tax.
The major sources of non-tax revenue are-
 Fees
 Fines or penalties
 Surplus from public enterprises
 Special assessment of betterment levy.
 Grants & gifts
 Deficit financing

7
Non Tax Revenue

 Fees: A fee is charged by public authorities for


rendering a service to the citizen. For example:
fees are charged for issuing of passport, driving
license.
 Fines or penalties: Fines or penalties are
imposed as a form of punishment for breach of
law or non fulfillment of certain condition or for
failure to observe some regulations. Fines are
imposed as a form of punishment to prevent
people from breaking the law.

8
Non Tax Revenue

 Surplus from public enterprise: A fee is


charged by public authorities for rendering a
service to the citizen. For example: fees are
charged for issuing of passport, driving license.
 Special assessment of betterment levy: It is
a kind of special charge levied on certain
members of the community who are
beneficiaries of certain government activities or
public projects.

9
Non Tax Revenue

 Grant & Gifts: Gifts are voluntary contributions


by individual or institution to the government. It
may also form other countries government.
 Deficit financing: Deficit means an excess of
public expenditure over public revenue. This
excess may be met by borrowings from the
market, from aboard, or from central bank.

10
Definition of Tax
 Tax is a compulsory levy, to be paid by the citizen
who are liable to pay it, imposed by the
government.
 Tax is a compulsory payment to the government
by the taxpayer without any expectation of some
specified return.

11
Characteristics of Tax

 Tax is a payment to government by the people as


it is levied by the government as per the section
83 of the constitution of BD.
 Payment of taxes is non-penal and compulsory;
hence refusal of to pay the tax is a punishable
offence.
 The aim of tax collection is to finance the
government expenditure to ensure public interest
and welfare.

12
Characteristics of Tax

 Tax is not the cost of the benefit conferred by the


government on the public. The benefit received
from the country is not directly the return of tax.
 It is one of the prime sources of revenue for the
government.
 Tax is not any fine or penalty.
 Tax can be imposed by the government of a
country.

13
Purpose or objectives of Taxation

 Revenue collection
 Reduction of inequalities in income and wealth
.
 Accelerating economic growth
 Control of consumption
 Protection of local industries
 Economic development

14
Canons of Taxation
 Canon of equality
 Canon of certainty
 Canon of economy
 Canon of convenience
 Canon of productivity
 Canon of simplicity
 Canon of elasticity
 Canon of diversity
 Canon of expediency

15

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