This document discusses taxes and excise duties in Bangladesh. It outlines the country's principal taxes including customs duties, VAT, and personal and corporate income taxes. It then focuses on vehicle taxes, noting that the BRTA oversees car taxes. Various taxes are levied on imported used vehicles based on their age. Hybrid and new cars are also subject to taxes. Excise duties are imposed on domestically produced goods like tobacco, alcohol, and gasoline. The document also discusses taxes on imported and exported petroleum products and alcohols. It notes challenges in tax collection and recommends improvements to support Bangladesh's economy.

1. Car Tax & Excise duties on
some fuel and alcohol
AIUB
Anik Barua

2. Tax
• From Latin word “Taxo”
• Mandatory Financial charge imposed upon a taxpayer by Government
• Direct Tax- Income tax, Real property tax, Personal property tax, etc.
• Indirect Tax- Sales tax, Per unit Tax, VAT, GST

3. Bangladesh tax system
• Principal taxes are
>Custom Duties
>VAT
>Supplementary Duty
>Personal income
>Corporate Tax
• The standard rate of VAT is 15% levied on transaction value of most of the imports and
supplies of goods and services.
• The National Board of Revenue (NBR) is the central authority for tax administration in
Bangladesh. Administratively, it is under the Internal Resources Division (IRD) of the
Ministry of Finance (MoF).

4. Car Tax
• Vehicle Excise Duty (VED) (also known as "vehicle tax", "car tax" or "road tax",
and formerly as a "tax disc")
• Is a tax that is levied as an excise duty and which must be paid for most types
of vehicles which are to be used (or parked) on public roads.
• BRTA (Bangladesh Road Transport Authority) is the main authority of Bangladesh

5. Car Tax
• Tax paid on import
>recondition/used vehicle
No. Description Tax
1 A year old used or recondition vehicle 0%
2 1 to 2 year old used or recondition vehicle 15%
3 2 to 3 year old used or recondition vehicle 25%
4 3 to 4 year old used or recondition vehicle 35%
5 4 to 5 year old used or recondition vehicle 40%

6. Car Tax
>Hybrid Cars
> New Cars

7. Car tax
• Vehicle Registration Fee

8. Car tax
• Advance income Tax

9. Car tax
• Road tax

10. Excise Duities
• Tax imposed on goods produced inland
• Also known as Central value Added Tax (CENVAT)
• Associated with customs duties
• Three main target of taxation
>Tobacco
>Alcohol
>Gasoline
• National Board of Revenue, Bangladesh collect the tax

11. Petroleum
• Imported Petroleum products
(A) Refined Oil: Gasoil 0.05 % ‘S’ (HSD),Motor Gasoline (MOGAS),JET A-1, Superior
Kerosene Oil (SKO),High Sulphur Furnace Oil 180 CST (HSFO)
(B) Crude Oil: Arabian Light Crude (ALC), Murban Crude Oil
• Exported petroleum product
1) NAPHTHA (produced from natural gas condensates, petroleum distillates, and
the distillation of coal tar and peat)
2) NATURAL GAS CONDENSATE (NGC)

12. Petroleum

13. Alcohols
Two Types-
1)for drinking
2)for medical and other purpose

14. Alcohols

15. Imported goods

16. Revenue collected
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
Revenue Import Value Quantity of imported goods

17. Reforms of tax system
• Hybrid cars below 1500cc will be subjected to 45 percent
supplementary duty, 1501cc and 2,000cc is 100 percent, 2001 to
2700cc cars, the duty is 200 percent
• lowering the 45 percent supplementary duty on imported parts and
components to 20 percent and helping motorcycle assemblers to
backward integrate more easily.

18. Challenges And Limitation
• Issues with collecting tax
• Tendency of tax avoidance
• Tax evasion
• Avoidance of control of evasion
• Failed to create public opinion on tax avoidance
• Corruption of tax officials

19. Recommendation
• In order to support the basic function of
sustainable Bangladesh and to create the
context for economic growth, tax system in
Bangladesh is indispensable. An improved tax
system is the key to financing the public
services, reducing inequality, making
government more accountable and helping to
improve self – reliance.