Incentives and Disincentives for New Entrepreneurs in Bangladesh: An Analysis of Income Tax Ordinance 1984

Abstract

Purpose – The main purpose of this study is to investigate the different aspects of income tax rules and regulations affecting new entrepreneurs and attempts to identify the incentives and disincentives in Income Tax Ordinance (ITO) 1984.

Methodology/Approach – For this study, Income Tax Ordinance-1984, Income Tax Rules-1984 and Finance Act and different SROs relating to this have been analyzed to identify the incentives and disincentives for new entrepreneurs in Bangladesh.

Findings – This study shows that Income Tax Ordinance-1984 and Income Tax Rules-1984 have some flaws that might have caused an environment that neither persuades the current players to set up new businesses nor does it attract the new entrepreneurs.

Originality/Value – This paper adds to the existing body of literature on new entrepreneurs’ fiscal incentives and disincentives studies by investigating incentives and disincentives for new entrepreneurs under the existing tax laws in Bangladesh.

Paper type - Research paper.

Keywords: Tax Incentives, Tax Disincentives, Tax, Government, Entrepreneurs, Bangladesh

JEL Classification: K34, M4