ABSTRACT
The research explores the effects of tax reform on the assessee and government revenue and proposes an alternative tax rate using secondary data. Data for the study was collected from the journal articles, books, budget speeches, and government publications to make a comparative analysis. The findings demonstrate that the low and high-income get more tax advantages than the middle-income assessee from the reform which does not comply with the ability-to-pay principle and canon of equity. Similarly, government revenue will decrease from the same income due to the reform leading to a budget deficit, which does not comply with the canon of productivity or adequacy and functional efficiency. The government is required to finance the budget deficit by taking loans leads to transferring the tax burden from high-income to low-income people as a hidden tax in the long term. The study will add value to public finance literature, especially tax reform, and help the taxation policy formulation. The study ignored the perception of the assessee on tax burden and the impression of the policy planner on government revenue from the reform.
Keywords: Tax rate reform; effects on assessee; effects on government revenue; individual assessee; compliance of canon of taxation; Bangladesh.
Received : 10th January 2022
Accepted : 15th January 2022
Published : 25th February 2022