Presumptive Taxation under Bangladesh VAT

The Bangladesh VAT system, which was introduced more than 20 years ago, is predominantly characterized by elements of presumptive taxation, in the form of turnover tax and notional valuation of transactions for VAT purposes. Those presumptive elements are remnants of the previously applicable excise duty. In this article, the author examines “presumptive taxation” in general and in the area of VAT in particular, and concludes that the presumptive elements in the Bangladesh VAT system are not only discriminatory but also have an adverse effect on the coherence of the modern tax.