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Taxation in Bangladesh Taxation in Bangladesh

Business in Bangladesh

Taxation in Bangladesh – Income Tax Act

In Bangladesh, the principal direct taxes are personal income taxes and corporate income taxes, and a value-added tax (VAT) of 15% levied on all-important consumer goods. The top income tax rate for individuals is 25%. For the 2004/05 tax year (July 1, 2004–June 30, 2005) the top corporate rate was 45%. However, publicly traded companies registered in Bangladesh are charged a lower rate of 30%. Banks, financial institutions and insurance companies are charged the 45% rate. All other companies are taxed at the 37.5% rate. Effective 1 July 2002, the VAT rate on computer hardware and software was reduced to 7.5%, and certain agricultural equipment and electricity supplied to the agricultural sector were exempted from VAT altogether. The VAT on the transfer of land is also to be abolished. Essential agricultural implements and irrigation pumps had previously been excluded from certain taxes.

Canons of Taxation

Canons of taxation refer to the administrative aspects of a tax. They relate to the rate, amount, method of levy and collection of a tax. In other words, the characteristics or qualities which a good tax should possess are generally described as canons of taxation.
According to Adam Smith, there are four canons of taxation which are still recognised as classic. To him a good tax is one which contains:

a) Canon of equality.

b) Canon of certainty.

c) Canon of economy.

d) Canon of convenience.

These canons indicates that Adam Smith was basically concerned with the ways in which an economy could increase its productive capacity and thereby achieve a higher rate of economic growth. In addition to the above four canons,the otther economists have added a few more which are as under:

e) Canon of productivity.

f) Canon of simplicity.

g) Canon of elasticity.

h) Canon of diversity.

i) Canon of expediency.

j) Canon of functional efficiency.

We shall briefly describe them as follows:

1) Canon of Equality: The canon of equality or equity implies that taxation must ensure justice. the burden of taxation must be distributed equally or equitably in relation to the ability of the tax payers.Equity or social justice demands that the rich people should bear a heavier burden of tax and the poor a lesser burden. Hence, a tax system should contain progressive tax rates based on the tax-payer’s ability to pay and sacrifice.

2) Canon of Certainty: Taxation must have an element of certainty. According to Adam Smith, “the tax which each individual is bound to pay ought to be certain and not arbitrary. The time of payment, the manner of payment, the amount to be paid ought to be clear and plain to the contributor and to every other person.” The tax payers should not be the subject to arbitrariness and discretion of the tax officials, in which case there will be a scope for a corrupt tax administration.

3) Canon of Economy: Every tax has a cost of collection. It is important that the cost of collection should be as minimum as possible. It is useless to impose taxes which are too widespread and difficult to administrate. According to Adam Smith, “Every tax has to be contrived as both to take and keep out of the pockets of the people as little as possible over and above what it brings into the public treasury of the state.”

4) Canon of Convenience: This canon recommended that unnecessary trouble to the tax payer should be avoided. Otherwise various ill effect may result. According to Adam Smith,“Every tax ought to be levied at the time or in the manner in which it is most likely to be convenient for the contributor to pay it.”

5) Canon of Productivity: It is also called the canon of fiscal adequacy. This canon implies that a tax must yield sufficient revenue for the treasury and the government should not be forced to restore to difficult financing.

6)Canon of Simplicity: This canon recommended that  tax rates and tax systems should not be too complicated. That makes it difficult to administer and understand. Tax system ought to be simple and comprehensible.

7) Canon of Elasticity: Taxation should be elastic in nature in the sense that it become possible for the authorities, without undue delay, to revise the tax structure, coverage and rates and to suit the changing requirements of the economy. It means that taxation must have built-in flexibility.

8) Canon of Diversity: Canon of diversity implies that there should be a multiple tax system of diverse nature rather than having a single tax system. In the former case, the tax payer will not be burdened with a high incidence of tax in the aggregate. There should be a wide admixture of direct and indirect taxes.

9) Canon of Expediency: Taxation should be determined on the ground of its economic, social and political expediency. For instance, a tax on agricultural income lacks social, political or administrative expediency in Bangladesh and that’s why the government of India had to discontinue it.

10) Canon of Functional Efficiency: A tax policy needs to be efficient, operative and effective so that it can generate sufficient revenue for the government in order to ensure the economic development of the county. The system should be able to reduce the harassment and tax avoidance.

The above context  clarify that the tax structure is a part of overall economic philosophy and tax system that satisfies these basic canons can be termed a good one.

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Business in Bangladesh

Top 10 hotel brands/chains in Bangladesh

The hotel sector in Bangladesh is very popular in the world. There are many hotels in Bangladesh but a few of them are quite famous. Because they give their best service. Therefore, hotels have now become one of the brands, and they are known as the top hotels in Bangladesh. Most of the hotels are located in Dhaka, Sylhet, Chittagong, Cox’s Bazar and those hotels are doing good business. Hotels are not just made to stay. Many of these are events, wedding parties, and political events. There are also many branding product stores. So, the top branding hotel in Bangladesh is described below.

1. Four Points by Sheraton Dhaka, Gulshan

It is a multinational hotel brand run by Marriott International that targets business travelers and small conferences. It was founded in 1995 and has hotels worldwide. In Bangladesh, it is known as Four Points Sheraton Dhaka, Gulshan. It is located in the heart of Dhaka city. This hotel is convenient for many foreign embassies and high commissions, and they are a few steps away from premium shopping and dining. That is why the hotel provides the best service to tourists. Many tourists and businessmen come to Bangladesh every year. Therefore, Hotel Sheraton is always active to welcome them.

Contact:
6/A North Avenue Commercial Area, Dhaka 1212
Phone: 09609-444555

2. Amari Dhaka

Amari Dhaka is the top second hotel in Bangladesh. People know it as Amari Dhaka Hotel. They always provide good service to their customers. For example, 134 soundproofed rooms offer free Wi-Fi, free wired internet, and 24-hour room service. Amari Dhaka VIP provides good facilities to the person. They also organize various events.

Contact:
47, Road No 41, Gulshan-2, Dhaka City, Dhaka Division, Bangladesh 1212
Tel: +880 2 5505 9620

3. Best Western Plus Maple Leaf

The Best Western Plus Maple Leaf Hotel is located close to the train station and the great airport. The hotel is a 10-minute drive from the airport railway station and a 13-minute drive from Shahjalal Intl Airport (DAC). They have a 24-hour restaurant and room service. In the morning they serve a complimentary buffet breakfast. They also have Bhuvan SPA, high-speed Wi-Fi internet, rooftop BBQ restaurant. They communicate with their guests in three languages. Preferred, English, Arabic, and Hindi. So it is the third top hotel in Bangladesh.

Contact:
Best Western Plus Maple Leaf
Plot 1B, Road 1, Sector 1, Uttara Model Town, Dhaka 1230, Bangladesh.
Front Desk Hotline: +880-1966667677   Tel. : +880-2-48964855 
Fax: +880-2-8932835

4. Grand Sultan Tea Resort & Golf

Grand Sultan Tea Resort and Golf are located in Sylhet outside Dhaka. So, if the travelers want to visit Sylhet, they have to travel 4 hours from Dhaka. They will also be able to fly from Dhaka to Shahjalal International Airport. It is located at Srimangal in Sylhet. It is the only and five-star resort in the Sylhet region of Bangladesh. They have classified 135 rooms into 08 sections. They give their guests all five-star benefits. On the other hand, they arrange all kinds of meetings or events.

Contact:
Srimongal, Moulvibazar – 3210, Bangladesh.
For Reservation: +88 01730 793501 -4
For Corporate or Group Event: +88 01730 793555
Fax: +88 08626 73020

5. Hotel De Castle

Hotel de Fort Lee. Dhaka, a boutique hotel in Bangladesh. They started their hotel business in 1997. Their priority is to provide the best service to the guest. They provide 100% service to their guests during their stay at the hotel. They are working to establish world-class hospitality services. Because of this, they want international travelers to enjoy their leisure time well.

Contact:
Address: House 72, Block -B Road -21 Banani, Dhaka -1213 Bangladesh
Cell: +8801914392889
Email: info@hoteldecastlebd.com

6. Le Meridien Dhaka

Le Meridien Dhaka is a fully furnished Italian-designed hotel. They also decorate their 304 rooms in Italian design. The hotel was built in 2014. It is located in the vicinity of Banani. It is a 20-minute drive from the airport railway station. They give their guests all five-star benefits.

Contact:
79/A Commercial Area, Airport Rd., Nikunja 2, Khilkhet
Dhaka, 1229 Bangladesh
Phone: +880 963-8900089
Fax: +880 2-8900090
Sales fax: +880 2-8900090

7. Long Beach Hotel

Long Beach Hotel stands by very near to the beach. This hotel is situated at Cox’s Bazaar. From this hotel, every guest can see the longest amazing beach of 120 km in the world. They are also offering world-class facilities and exhilarating experiences to their guests. This hotel is a perfect choice for business, romance, and holiday travel.

Contact:
14 Kalatoli, Hotel-Motel Zone,
Cox’s Bazar, Bangladesh
Tel: +88 0341 51843-6, +88 09666772266
Reservation: +88 01730338907, +8801755660051
Email: sales@longbeachhotelbd.com

8. Pan Pacific Sonargaon Dhaka

Pan Pacific Sonargaon Dhaka is a hotel of Pan Pacific Hotels Group. It’s Headquarter is in Singapore. This hotel is located at the heart of the City Center. The hotel is fully controlled by its headquarters in Singapore. There are property companies with an outstanding portfolio of investment and development properties. Pan Pacific Hotels Group is working on developing about 50 hotels in 29 cities across the Asia Pacific, Europe, and North America. They are also managing their resorts in various proprietary ways.

Contact:
107 Kazi Nazrul Islam Avenue, Dhaka 1215, Bangladesh
Telephone+880 2 5502 8008
Emailenquiry.ppdac@panpacific.com

9. Rose View Hotel

Rose View Hotel is located in Sylhet. It has been made in hilly areas and Keane Bridge is a local landmark. There are some areas which are attractions to the guest include Dreamland and Adventure World. Also, this ideal hotel can hold for business and private gatherings for over one thousand people, with full meeting and event facilities. The hotel has 140 fully furnished deluxe and suite rooms and they provide all five-star facilities to their guests.

Contact:
Tel: ++88 (0821) 721835, 720492
Mob: ++8801972787878,01977200705
EMAIL: info@roseviewhotel.com /sales@roseviewhotel.com

10. Six Seasons Hotel

The Six Seasons Hotel salutes the city and stands tall. From where one can see Gulshan Lake and the park on one side. There are also breathtaking views of lamas all around. This magnificent hotel has grown to 15 floors. Its architecture is magnificent and full of mechanical talent and richness which has never been seen before. Six Seasons Dhaka is the top, safest hotel in Dhaka according to Trip Advisor rankings. This hotel is conveniently located in the diplomatic area of Gulshan II. They also offer car services upon prior request.

Contact:
Road 96, House 19, Gulshan 2, Dhaka
Mobile: +88 01955393291
E-mail: info@sixseasonshotel.com

Writer: MD.Afzal Hossain 

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Business in Bangladesh

Top 7 Well-known E-Commerce Company In Bangladesh

e commerce business in bangladesh

In Bangladesh, online shopping is getting more and more popular, people want to grab their products form hundreds of options. Consumers search for easier, trustworthy and applicable online shopping options where they can easily shop anytime as online shops are open 24/7. Big giants are attempting to grab the eCommerce market of Bangladesh like Alibaba already own daraz which was operating in Bangladesh for a few years.

Lets see what are the Top 7 E-Commerce Business in Bangladesh,

Rokomari.com

One of the most trusted and reliable e-commerce sites for books in Bangladesh, is rokomari.com. Since 2012, it has been operating and build their own home delivery system in Dhaka, Chittagong, and Rangpur. rokomari.com also sells electronics and accessories at very reasonable prices. They have great deals for books and other electronic products. You can purchase your products through cash on delivery, MasterCard, VISA card, Bkash, and DBBL as a payment system.

daraz.com.bd

Daraz BD, currently owned by Alibaba is one of the leading online shopping sites in Bangladesh. You can have almost everything here with a wide selection of electronics, fashion and home appliances. From 2015 March, Daraz started their journey to Bangladesh.  They catch a big portion of the market share selling products on discount offers, installment facilities. You can have your product on your desired pick up point as they are making a strong supply chain and warehouse facilities.

ajkerdeal.com

ajkerdeal.com has targeted the middle class with a wide range of daily necessary products. They have electronics, home appliances and food products. The products of ajkerdeal is very affordable everyone. They deliver their products theough cash on delivery, Bkash, DBBL, MasterCard, VISA card etc.

pickaboo.com

pickaboo.com is well known for the electronic devices. You can have almost any well known foreign brand’s electronic accessories at pickabook.com. From pickboo you will have brand warranty and 100% authentic products at very reasonable prices. They provide EMI too and have a very easy returnable policies for better customer experiences.

Bagdoom.com

Bagdoom.com is famous for its lifestyle products. They sell almost all kinds of life style products and they target the youth. Its previous name was akhoni.com. To become more specific and relatable to the youth they rebrand the site and the transformation is quite successful for the company.

othoba.com

othoba.com is an E-Commerce site which is more focused garbing the market of the accessories, daily groceries, and medical kits. It is doing business from November 2015. It is a sister concern of Pran-RFL group. Their advantage over other e-commerce site is lower delivery charges. The Pran-RFL company’s strong distribution system is working as a core pillar for the othoba.com.

PriyoShop.com

priyoshop.com is trust able and popular for clothing, footwear, jewelry, restaurants, health & beauty products. From 2013, priyoshop.com is raising. It has ensured all the necessary facilities for the consumers and racing to become one of the e-commerce market leader in Bangladesh.

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