Assessing the effect of the COVID-19 pandemic on the government revenues: a study on individual taxpayers of Bangladesh

User Rating:  / 0
PoorBest 

Authors:


M.R.Islam, orcid.org/0000-0003-3937-3835, Daffodil International University, the Peoples Republic of Bangladesh, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

S.Suraiya, orcid.org/0000-0001-9964-1171, Daffodil International University, the Peoples Republic of Bangladesh, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

N.M.Zayed, orcid.org/0000-0001-7519-6552, Daffodil International University, the Peoples Republic of Bangladesh, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

K.B.M.R.Hasan, orcid.org/0000-0002-3142-9390, Agrani Bank Limited, the Peoples Republic of Bangladesh, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

M.S.Bipasha, orcid.org/0000-0002-0869-8963, Daffodil International University, the Peoples Republic of Bangladesh, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

V.Nitsenko, orcid.org/0000-0002-2185-0341, SCIRE Foundation, Warsaw, the Republic of Poland, email: This email address is being protected from spambots. You need JavaScript enabled to view it.


повний текст / full article



Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu. 2021, (5): 154 - 159

https://doi.org/10.33271/nvngu/2021-5/154



Abstract:



Purpose.
The purpose of the study includes analyzing the effects of the Coronavirus pandemic on the taxpaying ability of individual taxpayers of Bangladesh and its subsequent impact on the government revenue collection; analyzing the factors related to the taxpaying ability like the situation of their employer, regularity of payment and so on; suggestions to the policy makers.


Methodology.
In this study purposive random sampling technique was followed to choose the respondents. The sample of the research includes the individuals who are within the tax net and have to pay income tax to the government. 128 respondents participated in the survey spontaneously. Mean value, standard deviation and related statistical tools were used for analyzing the data in the research. SPSS software was used for analyzing and interpreting the research result. Statistical tables were used to display the outcome.


Findings.
The major findings of the study suggest that 65.6% of the respondents said that their official activities have been affected much while other 25% claimed that their activities have become moderately affected due to the COVID-19 pandemic. Income of 40.6% of the respondents has already been much affected and income of 32.8% of the respondents has been moderately affected. The study warns that due to the detrimental effects of the COVID-19 pandemic on the income level, the governments tax collection may fall.


Originality.
The study concludes that the adverse effects of the COVID-19 pandemic will negatively affect the government revenue collection and to tackle this situation a less regressive tax system is suggested which will allow shifting tax liability to the rich taxpayers. The study emphases the implementation of the existing tax laws so that tax evasion is minimized.


Practical value.
The study has recommended some specific recommendations that may help the respective authority in tackling the ongoing coronavirus pandemic. The study suggested making some necessary adjustments in the public expenditure to reduce the pressure on tax collection. It might be beneficial to the government to manage the COVID-19 pandemic if the recommendations of the study are taken into consideration.



Keywords:
taxpayer, regressive tax system, COVID-19 pandemic, tax evasion, government stimulus

References.


1. Islam, M.R. (2016). Contribution of indirect taxes on GDP of Bangladesh. Asia Pacific Journal of Research, l(XXXVIII), 213-217.

2. Shil, N.C., Masud, M.Z., & Alam, M.F. (2017). Bangladesh income tax: Theory and practice, (11th ed). Dhaka: Shams & AMS. Retrieved from http://182.160.97.198:8080/xmlui/handle/123456789/1127?show=full.

3. Adrian, T., & Natalucci, F. (2020). OVID-19 Crisis Poses Threat to Financial Stability. IFMBlog. Retrieved from https://blogs.imf.org/2020/04/14/covid-19-crisis-poses-threat-to-financial-stability/.

4. Fraser, D. (2020). Covid-19 has become an economic crisis says chief economist. BBC News. Retrieved from https://www.bbc.com/news/uk-scotland-52367295.

5. Guerrieri, V., Lorenzoni, G., Straub, L., & Werning, I. (2020). Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages? National Bureau of Economic Research, No. w26918. https://doi.org/10.3386/w26918.

6. Lalon, R.M. (2020). COVID-19 vs Bangladesh: Is It Possible to Recover the Impending Economic Distress Amid This Pandemic? Journal of Economics and Business, 3(2), 825-836. https://doi.org/10.31014/aior.1992.03.02.240.

7. Clemens, J., & Veuger, S. (2020). Implications of the Covid-19 pandemic for state government tax revenues. National Bureau of Economic Research, No. w27426. https://doi.org/10.3386/w27426.

8. Faria-e-Castro, M. (2021). Fiscal policy during a pandemic. Journal of Economic Dynamics and Control, 125, 104088. https://doi.org/10.1016/j.jedc.2021.104088.

9. Galletta, S., & Giommoni, T. (2020). The effect of the 1918 influenza pandemic on income inequality: Evidence from Italy. SSRN, 3634793. https://doi.org/10.2139/ssrn.3634793.

10. Dang, H.A.H., & Nguyen, C.V. (2021). Gender inequality during the COVID-19 pandemic: Income, expenditure, savings, and job loss. World Development, 140, 105296. https://doi.org/10.1016/j.worlddev.2020.105296.

11. Gangopadhyaya, A., & Garrett, A.B. (2020). Unemployment, Health Insurance, and the COVID-19 Recession. SSRN, 3568489. https://doi.org/10.2139/ssrn.3568489.

12. NBR formulating strategy considering pandemic to achieve target (2020). The Financial Express. Retrieved from https://thefinancialexpress.com.bd/economy/nbr-formulating-strategy-considering-pandemic-to-achieve-target-1589125578.

13. Mogaji, E. (2020). Financial Vulnerability during a Pandemic: Insights for Coronavirus Disease (COVID-19). SSRN, 3564702. https://doi.org/10.2139/ssrn.3564702.

14. Bostan, S., Erdem, R., ztrk, Y.E., Kl, T., & Ylmaz, A. (2020). The Effect of COVID-19 Pandemic on the Turkish Society. Electronic Journal of General Medicine, 17(6), em237. https://doi.org/10.29333/ejgm/7944.

15. Burdorf, A., Porru, F., & Rugulies, R. (2020). The COVID-19 (Coronavirus) pandemic: consequences for occupational health. Scandinavian Journal of Work, Environment & Health, 46(3), 229-230. https://doi.org/10.5271/sjweh.3893.

16. Islam, M.R., Kabir, S., Noor, F., & Kulsum, U. (2020). Perception towards the Newly Adopted Vat & Sd Act 2012 In Bangladesh: a Strategic Analysis on Tax Practitioners and Experts. Academy of Strategic Management Journal, 19(2).

17. Devereux, M.P., Geri, ., Simmler, M., & Tam, E.H. (2020). Discretionary fiscal responses to the COVID-19 pandemic. Oxford Review of Economic Policy, 36(Supplement_1), S225-S241. https://doi.org/10.1093/oxrep/graa019.

18. Hafiz, H., Oei, S.Y., Ring, D.M., & Shnitser, N. (2020). Regulating in Pandemic: Evaluating Economic and Financial Policy Responses to the Coronavirus Crisis. Boston College Law School Legal Studies Research Paper No. 527. SSRN, 3555980. https://doi.org/10.2139/ssrn.3555980.

19. Sumner, A., Hoy, C., & Ortiz-Juarez, E. (2020, April). Estimates of the Impact of COVID-19 on Global Poverty. UNU-WIDER, 800-9. https://doi.org/10.35188/UNU-WIDER/2020/800-9.

20. Loayza, N.V., & Pennings, S. (2020). Macroeconomic policy in the time of covid-19: A primer for developing countries. Research and Policy Briefs, no. 28. World Bank, Washington, DC. https://doi.org/10.1596/33540.

21. Hevia, C., & Neimeyer, P.A. (2020). A perfect storm: COVID-19 in emerging economies, 25-37. In: COVID-19 in Developing Economies, Edited by Simeon Djankov and Ugo Panizza. International Development Policy Journal. Centre for Economic Policy Research.

 

Visitors

6237618
Today
This Month
All days
2072
64295
6237618

Guest Book

If you have questions, comments or suggestions, you can write them in our "Guest Book"

Registration data

ISSN (print) 2071-2227,
ISSN (online) 2223-2362.
Journal was registered by Ministry of Justice of Ukraine.
Registration number КВ No.17742-6592PR dated April 27, 2011.

Contacts

D.Yavornytskyi ave.,19, pavilion 3, room 24-а, Dnipro, 49005
Tel.: +38 (056) 746 32 79.
e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
You are here: Home Archive by issue 2021 Content №5 2021 Assessing the effect of the COVID-19 pandemic on the government revenues: a study on individual taxpayers of Bangladesh