The government of Bangladesh is planning to introduce the Value Added Tax (VAT) at the import-cum-manufacturing stage, effective July 1991. The authors examine methodologies related to three approaches to the estimation of revenue from the VAT system in Bangladesh. Comparison of alternative...

This paper analyzes revenue and welfare effects of implementing a FAT both from a theoretical and a quantitative perspective. The theoretical analysis allows us to derive expressions for the revenue effects and the deadweight loss in a general equilibrium setting, which can be quantified with a...