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Automation of VAT System: A Pathway of Domestic Resource Mobilization

Automation of VAT System: A Pathway of Domestic Resource Mobilization
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Author(s): Biplob Kumar Nandi (East West University, Bangladesh), Md. Humayun Kabir (East West University, Bangladesh)and Nandini Roy (University of Dhaka, Bangladesh)
Copyright: 2022
Pages: 22
Source title: Research Anthology on Cross-Disciplinary Designs and Applications of Automation
Source Author(s)/Editor(s): Information Resources Management Association (USA)
DOI: 10.4018/978-1-6684-3694-3.ch014

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Abstract

The automated tax system has been taken as an effective tool for modernizing the tax system. The automated tax system can easily store all types of reported income, and it makes the tax submission procedure easy and convenient, resulting in reducing the compliance cost. The main objective of this chapter is to explain the necessity of an automated value added tax (VAT) system for raising domestic resource mobilization and how automation can be a better alternative to finance sustainable development goals projects. The secondary data was collected from the National Board of Revenue, Bangladesh. This study explains that the entire VAT system's automation can reduce the taxpayers' incentive to evade tax by reducing the tax compliance and taking bribes of tax officials. In sum, automation of the tax system would ultimately be pragmatic tax reform for the financing in the SDG projects.

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