Apples Competitive Advantage

Apples Competitive Advantage Apples since its inauguration brought an easy to use computers to the market. So that users would not face any problems while using Apple products. Apple practiced horizontal as well as vertical integration. Apple relied on its own designs and refused to authorize its hardware to third parties. Apple used superior software which made help them to grebe the market share. Apple offered a complete package of desktop solution which includes hardware, software and other things. Apple always used typical design for its products. In the era of Spindlers (1993-1996), he opt the strategy to expand Apple products to international market. Apples competitive advantage are its control of software, Hardware, retail strategy, product differentiation and most important one is Steve Jobs strategically decision making. For the distribution system, Apple launched a website for direct sales for the first time. Apple also spent more money on its Research and Development. Apples current competitive advantages can be linked to its initial competitive advantage because users now-a-days value the user experience just like when Mac was initially introduced (Bajg, 2012). Personal Computer Industry and dynamics IBM brought PCs into mainstream in 1980s. Microsoft and Intel products dominated the personal computer industry and more people owned their personal computer. Overall industry continued to boom through early 2000s. In 2000 and on wards PCs were very fast, have more memory and storage. But the prices of PCs continuously dropped. As a result, PC manufacturers average profit margin fell down. New PC emerged as well. Also more expensive laptops gained the attraction of the market. But as the price of PCs fell down, their sales volume increased. As there is expansion of growth so competition in the market also increased (Rich, 2012). Due to the increase in competition, prices of the products fell down and it provided consumers with more options. There are five categories of Pc buyers: Home, Small and medium sized business, government and corporate education. The biggest segment is represented by home consumers. There are four main vendors of PC: HP, Dell, Acer and Lenovo. There are two types of suppliers; one who make product with many sources and other make products such as microprocessors and operating system (Aquino, 2012). By viewing the PC industry it can be said that dynamics are very favorable for the Apple. There are good signs for Apple due to certain reasons. Competition is very high in today era and every company wants to provide best products or services so that customer can be retain. Mostly top four vendors are dealing with desktops and laptops. The preferred personal computers may no longer take the form of a desktop or laptop. Indeed a portion of the personal computer industry has already shifted their preference from a desktop or a laptop to a tablet or iPaD. There are many reasons for this change, including convenience and mobility. So there is chance for Apple to come up with new products and capture the market (Rich, 2012). Apple competitive position in Personal Computers Since its inception, Apples mission is to bring as easy-to-use computer, difference in design elegance to market. Apple also practiced horizontal and vertical integration instead of open system. It relied only o its own designs ad also rejected to license its hardware to the third parties. When Sculleys was the CEO during 1985-1993, Apple targeted low cost computer. Apple also made an alliance with IBM for OS development on Intel platform, but that ended without any result. One of the Apple main strength is to offer its customers a complete desktop solution; which is simply Plug and Play. Apple target market is now increasing. Because people want convenience and they need products which are easy in use (Bajg, 2012). The creation of Mac boasted Apple sales. And Mac customers allowed Apple to sell its products at a premium price. During 1993-1996 Splinder made the strategy to expand Apple to international market but it did not help Apple in long term. Steve Job took over as CEO in 1997 and restructured company on the original strategy. Jobs also launched a website for direct sale and also he increased its spending on RD to get further knowledge about the products. Exhibit 3 shows Apples worldwide PC market share from 1980-2009. In 1980 Apple has the very high market share. But with the passage of time its market share started to decline. And during 1994 market share fell down substantially. When Steve Jobs joined the company again it started to increase gradually. Now Apple is gaining market share slowly (Rich, 2012). Apples Competitive positioning in MP3 players Ipod set Apple on the high growth path. Initially iPod was the portable digital music Players based on the Mp3 standard. It has very good design, large storage and a simple user interface. Early MP3 players only stored hour music, can stored up to 1000 songs. But with the passage of time Apple launched new and innovative design one after another. In 2010, Apple has more than 70% of the MP3 market share. Gross margin for IPod is around 40% in 2007. The cost of main component is flash memory which is more than half of the billing material. In MP3 market there are very less competitors for Apple so it will easy o gain more market share for Apple. So in MP3 market Apple performance is very good and it is increasing as Apple delivers innovative designs which are very attractive to the customers (Aquino, 2012). Apple Competitive position in Smart Phones Steve Jobs launched the first iPhone and smart phone industry began. Apple smart phone Market share is high. More than 2 billion applications have been downloaded from the Apple iphone App Store. Apple mission is that iPhone gets better with every new app. Apple has just great job of continuously improving the iPhone with new features and capabilities. Also Steve Job did excellently with I Tunes and iPod. And now he is doing it with it iPhones. Apple iPhone created a new class of phone. Apple invented the market and other mobile device maker is chasing Apple. The main competitors of Apple are Google Android, Nokia and Blackberry. Apple provides the best services in iPhones (Bajg, 2012). iPad and new iPad mini iPad is the mixture produced by Apple after lending iPhone and iPod technology. iPad is the best way to experience the web. It has revolutionized traditional ways of surfing the internet. It views whole pages in portrait or landscape on the screen of large multi-touch. Its also deals with checking e-mail and sending email as well. It is also worlds largest cookbook. Storage of iPad is very great and also it has large display. It is also easy to access different books from iPad. iPad is use in businesses, education, health and consumer usage. So iPad is very useful in different areas. And its demand will be increasing in next days. As now a days consumer wants more convenience and mobility (Aquino, 2012). According to Rich (2012) iPad mini is a another amazing product launched by Apple. It has a smaller screen as compared to iPad. iPad is cheaper than iPad. Nd the reason for its cheapness is that it has no retina display. iPad mini is lighter and thinner than iPad. Also it has less powerful processor and it uses a nano SIM. It has fewer functions than iPad. But due to its size and thickness it is very easy to keep in the pocket. In future it will be very helpful for the people to some extent.

When It Rains, It Pours :: Personal Narratives Depression Death Essays

When It Rains, It Pours Have you ever had a time in your life where you felt like everything was just dumped on you? I did, and undoubtedly it happened just as I came to school at State University. That saying, â€Å"When it rains, it pours,† just seemed to fit me perfectly. Within a two week period one of my friends from high school committed suicide, my grandma went in the hospital, and my boyfriend broke up with me. Yet, from these experiences in my life, I grew, more than I have ever grown before. This is why I am writing about it. Although, everyone goes through hard times, there were not many people out there who related to me. That is why it was hard to get help when it was needed. Maybe someone can learn from my experience and be just as strong as I was. I was very excited to make a new step in my life, college. I came with high hopes and aspirations. My hometown is not near Arizona, It is Lake Tahoe, Nevada, so going home for the weekend was simply out of the question. I had a great time for the first month, enjoying freedom. However, I was sitting in my room one night writing a paper with my roommate, and one of my friends from home called me. She said that one of our good friends from high school had just committed suicide earlier that day. I didn’t know how to react to this; I was scared, and confused. Why did he do it? Why didn’t anyone know that he was unhappy? Was he unhappy? I felt regret, thinking I should have been there for him. Once the crying commenced, my mother called me telling me that my last grandma had gone into the hospital. She had collapsed in her apartment and was rushed to the emergency center. I had no idea what to do. I felt like God was just condemning me and attacking me for som e reason. I went into this deep depression and I didn’t want anyone to talk to me, if they did, I would simply start crying. I was alone, and no one knew who I was. I was too far away from home to go to my friend’s ceremony.

Alexander the Great Essay -- Biography

  Ã‚  Ã‚  Ã‚  Ã‚  Humanity has known a few distinguished consolidators of civilizations. Alexander the Great is one of them, and the first to accumulate power in his hand beyond any conqueror’s dream. His feats served as guidelines for other rulers like Cesar Augustus and Napoleon, who, by means of outstanding military prowess, conquered and ruled most of the civilized world of their times.   Ã‚  Ã‚  Ã‚  Ã‚  Alexander was born in 356 B.C., as the son of King Philip II and Olympias. He was taught by the great philosopher, Aristotle, inspiring him in the fields of, philosophy and medicine. Although he had a broader view of humanity than that of Aristotle’s perception, that all non-Greeks, should be treated as slaves. Alexander, after the death of his father, King Philip II in 336 BC, was to become the next king of Macedonia at the tender age of 20. Although young, Alexander was determined and willing to become the next great king of Macedonia. Because of his young age Greek cities, who had pledged loyalty to his father, were not certain that they wanted to allow a twenty-year-old boy to lead a kingdom. Also, barbarians from the north and west, whom Philip had repressed, were becoming a threat to Macedonia.   Ã‚  Ã‚  Ã‚  Ã‚  Those close to Alexander had recommended that he let Athens and Thebes go and be careful with the barbarians to prevent them from rebelling. Alexander however, had other plans. So he proceeded north, and drove the barbarians past the Danube River. The rumor of Alexander’s supposed death, were being spread throughout Athens and Thebes, claiming that it was the moment for them to disconnect from Macedonia. Infuriated by these rumors, Alexander showed up at the gates of Thebes, in 335 B.C., only to find the refusal of surrender by the Thebans. The Thebans sent a small body of soldiers, with whom Alexander sent his own of archers and infantry. The following day, Alexander's general, Perdiccas, attacked the gates. The Macedonians then rushed into the city, killing almost everyone in sight, including women and children. They continued on and burned the entire city of Thebes to the ground. This display proved as an example to the rest of Greece. Athens quickly rethought their decision of before to not follow Alexander, and chose to come to terms with their new leader.   Ã‚  Ã‚  Ã‚  Ã‚  Alexander was determined to achieve the dream of his father, the takeover of the Persian Empire. T... ...ly three quarters of his army to starvation and the harsh conditions of the desert. When the survivors reached the region called Carmania, their fortune changed dramatically as they were welcomed into the prosperous land. Alexander and his men celebrated the end of their ordeal in the desert and traveled in luxury to Harmezeia, where they rejoined Nearchus and his soldiers. Then the whole army marched inland to Persis to rest. In 324 B.C.E., Alexander furthered his mission to assimilate Macedonian and Persian cultures when he arranged thousands of marriages between the Greek soldiers and Persian women in Susa. Alexander himself took a second wife, Stateira, one of Darius' daughters. In the spring of the same year while Alexander's army was stationed in Ecbatana, his best friend, Hephaestion, died of a fever. He was overcome with grief, and he consoled himself by leading a campaign against a tribe of brigands called the Cossaeans. The next year, Alexander traveled with his men to Babylon despite numerous threatening omens. The omens were so frequent and ominous that Alexander feared that he had fallen out of favor with the gods. He died of a fever on June 10, 323 B.C.E. Alexander the Great Essay -- Biography   Ã‚  Ã‚  Ã‚  Ã‚  Humanity has known a few distinguished consolidators of civilizations. Alexander the Great is one of them, and the first to accumulate power in his hand beyond any conqueror’s dream. His feats served as guidelines for other rulers like Cesar Augustus and Napoleon, who, by means of outstanding military prowess, conquered and ruled most of the civilized world of their times.   Ã‚  Ã‚  Ã‚  Ã‚  Alexander was born in 356 B.C., as the son of King Philip II and Olympias. He was taught by the great philosopher, Aristotle, inspiring him in the fields of, philosophy and medicine. Although he had a broader view of humanity than that of Aristotle’s perception, that all non-Greeks, should be treated as slaves. Alexander, after the death of his father, King Philip II in 336 BC, was to become the next king of Macedonia at the tender age of 20. Although young, Alexander was determined and willing to become the next great king of Macedonia. Because of his young age Greek cities, who had pledged loyalty to his father, were not certain that they wanted to allow a twenty-year-old boy to lead a kingdom. Also, barbarians from the north and west, whom Philip had repressed, were becoming a threat to Macedonia.   Ã‚  Ã‚  Ã‚  Ã‚  Those close to Alexander had recommended that he let Athens and Thebes go and be careful with the barbarians to prevent them from rebelling. Alexander however, had other plans. So he proceeded north, and drove the barbarians past the Danube River. The rumor of Alexander’s supposed death, were being spread throughout Athens and Thebes, claiming that it was the moment for them to disconnect from Macedonia. Infuriated by these rumors, Alexander showed up at the gates of Thebes, in 335 B.C., only to find the refusal of surrender by the Thebans. The Thebans sent a small body of soldiers, with whom Alexander sent his own of archers and infantry. The following day, Alexander's general, Perdiccas, attacked the gates. The Macedonians then rushed into the city, killing almost everyone in sight, including women and children. They continued on and burned the entire city of Thebes to the ground. This display proved as an example to the rest of Greece. Athens quickly rethought their decision of before to not follow Alexander, and chose to come to terms with their new leader.   Ã‚  Ã‚  Ã‚  Ã‚  Alexander was determined to achieve the dream of his father, the takeover of the Persian Empire. T... ...ly three quarters of his army to starvation and the harsh conditions of the desert. When the survivors reached the region called Carmania, their fortune changed dramatically as they were welcomed into the prosperous land. Alexander and his men celebrated the end of their ordeal in the desert and traveled in luxury to Harmezeia, where they rejoined Nearchus and his soldiers. Then the whole army marched inland to Persis to rest. In 324 B.C.E., Alexander furthered his mission to assimilate Macedonian and Persian cultures when he arranged thousands of marriages between the Greek soldiers and Persian women in Susa. Alexander himself took a second wife, Stateira, one of Darius' daughters. In the spring of the same year while Alexander's army was stationed in Ecbatana, his best friend, Hephaestion, died of a fever. He was overcome with grief, and he consoled himself by leading a campaign against a tribe of brigands called the Cossaeans. The next year, Alexander traveled with his men to Babylon despite numerous threatening omens. The omens were so frequent and ominous that Alexander feared that he had fallen out of favor with the gods. He died of a fever on June 10, 323 B.C.E.

Their Eyes Were Watching God :: essays research papers

Janie is the novel's hero. The story is told in first person as she narrates the story of her life to her friend Pheoby Watson. This is a story of one woman's search for love in the world. From the beginning of Janie’s story under the pear tree, she tries desperately to â€Å"find who she is† and this consist of obtaining three different husbands. Janie has gone through a lot in her life time the fact that she is a product of white rape - causes her to be lighter-skinned than other black women. Because Janie is an â€Å"unusual† woman concerning her physical characteristics this is a major factor during her marriage to Joe Starks and interactions with Mrs. Turner. Joe (Jody) Starks is Janie's second husband. She meets one day while still married to Logan. Joe proposes to Janie several weeks later, she accepts and feels that she can finally get away from Logan and start a new life. Joe's desire is to be a "big voice," in the community. This soon creates conflict for his new wife. Janie understands she is an â€Å"ornament† for Joe because of her physical characteristics. Joe wants Janie to be seen and not heard. He wants her to be his â€Å"light-skinned trophy† for the people of Eatonville to envy. Joe realizes that his wife Janie is very beautiful and he becomes jealous of other men lusting after her. Because of this, Joe restricts Janie by forcing her to always tend the store and wear a head rag to hide her beautiful hair. Joe wants complete control of Janie and sometimes he beats her when she does not obey him. I feel that Joe's search for power and to have the dominant role over women is very emphasized and presence. To â€Å"top it off†, Joe makes Eatonville's black community â€Å"bow† to him as non-equals. Sometimes the things that Joe does are traditional white behavior. When Joe dies his meanness left him friendless, with only Janie by his side. After Joe Starks dies, Janie realizes that her grandmother had "taken the biggest thing God ever made, the horizon†¦and pinched it in to such a little bit of a thing that she could tie it about her granddaughter's neck tight enough to choke her. She hated the old woman who had twisted her so in the name of love" (85). The novel's title is taken from Chapter 18, as the hurricane strikes the Everglades. Their Eyes Were Watching God :: essays research papers Janie is the novel's hero. The story is told in first person as she narrates the story of her life to her friend Pheoby Watson. This is a story of one woman's search for love in the world. From the beginning of Janie’s story under the pear tree, she tries desperately to â€Å"find who she is† and this consist of obtaining three different husbands. Janie has gone through a lot in her life time the fact that she is a product of white rape - causes her to be lighter-skinned than other black women. Because Janie is an â€Å"unusual† woman concerning her physical characteristics this is a major factor during her marriage to Joe Starks and interactions with Mrs. Turner. Joe (Jody) Starks is Janie's second husband. She meets one day while still married to Logan. Joe proposes to Janie several weeks later, she accepts and feels that she can finally get away from Logan and start a new life. Joe's desire is to be a "big voice," in the community. This soon creates conflict for his new wife. Janie understands she is an â€Å"ornament† for Joe because of her physical characteristics. Joe wants Janie to be seen and not heard. He wants her to be his â€Å"light-skinned trophy† for the people of Eatonville to envy. Joe realizes that his wife Janie is very beautiful and he becomes jealous of other men lusting after her. Because of this, Joe restricts Janie by forcing her to always tend the store and wear a head rag to hide her beautiful hair. Joe wants complete control of Janie and sometimes he beats her when she does not obey him. I feel that Joe's search for power and to have the dominant role over women is very emphasized and presence. To â€Å"top it off†, Joe makes Eatonville's black community â€Å"bow† to him as non-equals. Sometimes the things that Joe does are traditional white behavior. When Joe dies his meanness left him friendless, with only Janie by his side. After Joe Starks dies, Janie realizes that her grandmother had "taken the biggest thing God ever made, the horizon†¦and pinched it in to such a little bit of a thing that she could tie it about her granddaughter's neck tight enough to choke her. She hated the old woman who had twisted her so in the name of love" (85). The novel's title is taken from Chapter 18, as the hurricane strikes the Everglades.

Tax(Case Report-on-Income-Tax-Authorities-in-Bangladesh)

ASSIGNMENT on Income Tax Authorities in Bangladesh [pic] National Board of Revenue – NBR Rajashwa Bhaban Segunbagicha, Dhaka Telephone: +88 02 933-3444. http://www. nbr-bd. org National Board of Revenue (NBR), Bangladesh. Page 2 of 31 Table of contents: |Serial |Topic |Page No. | |I |Cover |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 01 | | |Page†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. | | | |. | |II |Topic/Source of the ASSIGNMENT†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 02| |III |Table of |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 03| | |contents†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ | | |01 |Letter of |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 04| | |Transmittal†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. | |02 |Acknowledgement †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 05| |03 |Background of |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 06| | |NBR†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. | | |04 |Taxation and its |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 07| | |history†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ | |05 |Tax Authori ties of Bangladesh †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 | |06 |Types of Income †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦12 | |07 |Classification of Tax systems†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 | |08 |Types of |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦14 | | |Taxation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. | |09 |Methodology †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦15 | | |9. 01 Sources of Income†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦15 | | |9. 02 Tax Rate†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦16 | | |9. 03 Tax Rebate for investment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦16 | | |9. 04 Who should submit Income Tax Return? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 | | |9. 05 Time to submit Income Tax Return †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦18 | | |9. 06 Assessment Procedure †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦19 | | |9. 07 Tax withholding functions †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦19 | | |9. 08 Major areas for final settlement of tax liability †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦22 | | |9. 09 Fiscal incentives †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦23 | | |9. 10 Avoidance of Double Taxation Agreement †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦24 | |10 |Steps for collecting Income Tax in Bangladesh†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦24 | |11 |Procedure of Assessment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦25 | |12 |Problems for collecting Income Tax†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦26 | |13 |Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦31 | | |†¦Ã¢â‚¬ ¦.. | | National Board of Revenue (NBR), Bangladesh.Page 3 of 31 Letter of Transmittal March 03, 2012 To Md. Abdul Awal Chairman, EECS deparment NorthSouth University Basundhara Campus, Dhaka. Subject: Submission of Assignment on â€Å"Income Tax Authorities in Bangladesh†. Dear Sir I am pleased to submit this Assignment-report on â€Å"Income Tax Authorities in Bangladesh†. This research program was taken by the help of â€Å"Three tax system of Bangladesh†, written by M. A. Akkas, and â€Å"Income Tax† written by â€Å"Mr. Mahmud† and â€Å"Purohit Bhattacharjee†. Here is the report on the observational study of â€Å"Income Tax authority in Bangladesh†.We honestly believe that this report will fulfill the requirements of the case report, which will help us a lot to gain sufficient knowledge about the â€Å"Income Tax authority in Bangladesh† Sincerely, Deb kumar Roy ID:0910019040 National Board of Revenue (NBR), Bangladesh. Page 4 of 31 Acknowledgement I am very much grateful to the God first, who has given me all the ability to perform this chore. At last but not the least, I am grateful to my ever-respected parents those who always give us mental support and well wishes.National Board of Revenue (NB R), Bangladesh. Page 5 of 31 Background of NBR The National Board of Revenue (NBR) is the central authority for tax administration inBangladesh. ItwasestablishedbyPresident'sOrderNo. 76of1972. Administratively, it is under the Internal Resources Division (IRD) of the Ministry of Finance (MoF). MoF has 3 Divisions, headed by 3 permanent Secretaries to the Government, namely, the Finance Division the Internal Resources Division (IRD) and the Economic Relations Division (ERD). The Secretary, IRD is the ex-officio Chairman of NBR.NBR is responsible for formulation and continuous re-appraisal of tax-policies and tax-laws, negotiating tax treaties with foreign governments and participating in inter-ministerial deliberations on economic issues having a bearing on fiscal policies and tax administration. The main responsibility of NBR is to collect domestic revenue (primarily, Import Duties and Taxes, VAT and Income Tax) for the government. Other responsibilities include administration of al l matters related to taxes, duties and other tax producing fees.Under the overall control of IRD, NBR administers the Excise, VAT, Customs and Income-Tax services consisting of 3434 officers of various grades and 10195 supporting staff positions (Approved set up as on 09 Feb. , 2000 AD). Negotiating tax treaties with foreign governments and participating in inter- ministerial deliberations on economic issues having a bearing on fiscal policies and tax administration are also NBR's responsibilities. The main responsibility of NBR is to mobilize domestic resources through collection of import duties and taxes, VAT and income tax for the government.Side by side with collection of taxes, facilitation of international trade through quick clearance of import and export cargoes has also emerged as a key role of NBR. Other responsibilities include administration of matters related to taxes, duties and other revenue related fees/charges and prevention of smuggling. Under the overall control of IRD, NBR administers the excise, VAT, customs and income-tax services consisting of 3434 officers of various grades and 10195 supporting staff positions. National Board of Revenue (NBR), Bangladesh. Page 6 of 31Taxation and its history Taxation- one of the major sources of public revenue to meet a country's revenue and development expenditures with a view to accomplishing some economic and socialobjectives,suchasredistributionofincome,pricestabilizationand discouraging harmful consumption. It supplements other sources of public finance such as issuance of currency notes and coins, charging for public goods and services and borrowings. The term â€Å"Tax† has been derived from the French word â€Å"Taxe† and etymologically, the Latin word â€Å"Taxare† is related to the term ‘tax', which means ‘to charge'.Tax is ‘a contribution exacted by the state'. It is a non-penal but compulsory and unrequited transfer of resources from the private to the public sector, levied based on predetermined criteria. According to Article 152(1) of the Constitution of Bangladesh, taxation includes the imposition of any tax, rate, duty or impost, whether general, local or special, and tax shall be construed accordingly. Rate is a local tax imposed by local government on its residents or the property owners of the locality, a duty is a tax levied on a commodity, and an impost is a tax imposed for an entry into a country.Under the provision of article 83 of the Constitution, â€Å"no tax shall be levied or collected except by or under the authority of an Act of Parliament†. Bangladesh inherited a system of taxation from its past British and Pakistani rulers. The system, however, developed based on generally accepted canons and there had been efforts towards rationalizing the tax administration for optimizing revenue collection, reducing tax evasion and preventing revenue leakage through system loss.Taxes include narcotics duty (collected by the Department of Narcotics Control, Ministry of Home Affairs), land revenue (administered by the Ministry of Land and collected at local Tahsil offices numbered on average, one in every two Union Parishads), non-judicial stamp (collected under the Ministry of Finance), registration fee (collected by the Registration Directorate of the Ministry of Law, Justice and Parliamentary Affairs) and motor vehicle tax (collected under the Ministry of Communication). National Board of Revenue (NBR), Bangladesh.Page 7 of 31 The tax structure in the country consists of both direct (income tax, gift tax, land development tax, non-judicial stamp, registration, immovable property tax, etc) and indirect (customs duty, excise duty, motor vehicle tax, narcotics and liquor duty, VAT, SD, foreign travel tax, TT, electricity duty, advertisement tax, etc) taxes. The present land revenue system of Bangladesh has its base in the East Bengal state acquisition and tenancy act 1950 which established a dire ct contract between the taxpayer and the government.The most important tax on the value of transferred property is the non-judicial stamp tax (levied under the Stamp Act 1899), which has been in existence since January 1899. Current rates of non-judicial stamp duty are provided in the First Schedule of the Finance Act 1998, ranging from Tk. 4 to Tk. 10,000 in case of absolute rate, or from 0. 07% to 1. 5% of the value of consideration in case of ad valorem rate. The judicial stamp tax is being levied under the Court Fees Act 1870, although the levy of court fees originated in the introduction of the Bengal Regulation No. 8 of 1795. The first sales tax was introduced in the former Central Provinces of India in 1938. In Bengal, sales tax was adopted in 1941. In 1948, sales tax was transferred as a central tax under the General Sales Tax Act of 1948. The Sales Tax Act 1951 came into force on 1 July 1951 by repealing the Pakistan General Sales Tax Act of 1948. Until 1982, sales tax was being collected under the 1951 Act, which was replaced by the Sales Tax Ordinance 1982. The VAT law was promulgated by repealing the Business.Income tax was first introduced in the subcontinent by the British in 1860 to make up the revenue deficit caused by the sepoy revolt, 1857. After independence of Bangladesh, income tax was made effective under the Income Tax Act 1922 passed on the basis of the recommendations of the All-India Income Tax Committee appointed in 1921. Currently, income tax has been imposed under the Income Tax Ordinance 1984 (ITO) promulgated on the basis of recommendations of the Final Report of the Taxation Enquiry Commission submitted in April 1979.Income taxpayers (assesses) are classified as individuals, partnership firms, Hindu undivided National Board of Revenue (NBR), Bangladesh. Page 8of 31 families (HUF), associations of persons (AOP), companies (publicly traded and private), local authorities, and other artificial juridical persons. Tax rates and scope of taxable income differ based on residential status of an assesses (resident or non- resident). From fiscal or assessment year, (AY) 2000-01, there is a filing threshold of annual total income of Tk. 00,000 applicable for individuals (including non-resident Bangladeshis), partnership firms, HUF, AOP and assesses other than companies and local authorities. In case an identity of this group has a total annual income less than this level, he is not required to submit tax return but if someone's income is higher, he is to pay a minimum tax of Tk. 1,000. Bangladesh inherited a system of taxation from its past British and Pakistani rulers. National Board of Revenue (NBR), Bangladesh. Page 9 of 31 Tax Authorities of Bangladesh ? There are 3-divisions under the Ministry of Finance (MOF) and Secretary leads each division. ? |The Chairman of NBR (National Board of Revenue) is working |under Internal | | |Resource Division (IRD). | | | | | | | | | | |? |NBR is the apex body of the Tax Admi nistration. | | It consists of two parts: (1) Customs & VAT (2) Income Tax. Both are under the same authority.There are 4-members under NBR. ? Under the NBR, a Commissioner of Taxes is the head of the department and he is in charge of a taxes Zone. There are 8-Zones in Bangladesh. National Board of Revenue (NBR), Bangladesh. Page 10 of 31 [pic] National Board of Revenue (NBR), Bangladesh. Page 11 of 31 Types of Income Income Assessable IncomeNon-Assessable Income Taxable Income Non-taxable Income Income: Income means anything received in cash or in kind unless exempted by laws. 1) Assessable Income: Assessable Incomes are those incomes, which are included in the determination of total income of a taxpayer. ) Taxable Income: Taxable Incomes are those incomes that the tax is to be paid on those incomes. b) Non- Taxable Income: Non – taxable income is taken into total income for taxation rate purpose but no tax is to be paid on this part of income. 2) Non- Assessable Income: Non - assessable incomes are those incomes which are not included in the determination of total income of a taxpayer. National Board of Revenue (NBR), Bangladesh. Page 12 of 31 Classification of Tax systems Classification of Tax System Single Tax Multiple Taxes 1. Single Tax: Only one tax for everybody.Single tax is the poll tax or the head tax or adolescent tax, which is imposed on a person simply because he is there in the society. 2. Multiple Taxes:A system under which different types of taxes shall be levied by the govt. according to suitability. Ex. Income Tax, VAT. National Board of Revenue (NBR), Bangladesh. Page 13 of 31 Types of Taxation Types of Taxation a) Direct Tax b) Indirect Tax a) Progressive Tax b) Regressive Tax c) Proportional Tax a) Direct Tax: Direct tax is a sort of tax the impact of effect incidents and which fall back on the person on whom it is imposed. . e. : Income Tax, Marriage Tax etc. b) Indirect Tax: Indirect taxes are those burden of which can be passed o n others through price vehicles. c) Progressive Tax: The tax rate increases as the taxable income/amount increases. d) Regressive tax: The opposite of a progressive tax is a regressive tax where the tax rate decreases as the taxable income/amount increases. e) Proportional Tax: In between is a proportional tax, where tax is fixed as the amount to which the rate is applied increases. National Board of Revenue (NBR), Bangladesh. Page 14 of 31 MethodologyAmong direct taxes, income tax is one of the main sources of revenue. It is a progressive tax system. Income tax is imposed on the basis of ability to pay. The more a taxpayer earns the more he should pay†- is the basic principle of charging income tax. It aims at ensuring equity and social justice. Sources of Income: For the purpose of computation of total income and charging tax thereon, sources of income can be classified into 7 categories, which are as follows: †¢Salaries †¢Interest on securities †¢Income from house property †¢Income from agriculture †¢Income from business or profession Capital gains †¢Income from other sources. Tax Rate (Assessment Year- 2008-09): Other than Company: For individuals other than female taxpayers, senior taxpayers of 70 years and above and retarded taxpayers, tax payable for the |First |1,65,000/- |Nil | |Next |2,75,000/- |10% | |Next |3,25,000/- |15% | |Next |3,75,000/- |20% | |Rest Amount | |25% |For female taxpayers, senior taxpayers of age 70 years and above and retarded taxpayers, tax payable for the |First |1,80,000/- |Nil | |Next |2,75,000/- |10% | |Next |3,25,000/- |15% | National Board of Revenue (NBR), Bangladesh. Page 15 of 31 |Next |3,75,000/- |20% | |Rest Amount | |25% |Minimum tax for any individual assesses is Tk. 2,000 Non-resident Individual25% (other than non-resident Bangladeshi) For Companies Publicly Traded Company27. 5% Non-publicly Traded Company37. 5% Bank, Insurance & Financial Company 45% Mobile Phone Operator Compan y45% If any publicly traded company declares more than 20% dividend, 10% rebate on total tax is allowed. Tax Rebate for investment: Rate of Rebate: Amount of allowable investment is either up to 25% of total income or Tk. 5,00,000/- whichever is less.Tax rebate amounts to 10% of allowable investment. Types of investment qualified for the tax rebate are: †¢Life insurance premium †¢Contribution to deferred annuity †¢Contribution to Provident Fund to which Provident Fund Act, 1925 applies †¢Self contribution and employer's contribution to Recognized Provident Fund †¢Contribution to Super Annuation Fund †¢Investment in approved debenture or debenture stock, Stocks or Shares †¢Contribution to deposit pension scheme †¢Contribution to Benevolent Fund and Group Insurance premium †¢Contribution to Zakat Fund Donation to charitable hospital approved by National Board of Revenue †¢Donationtophilanthropicoreducationalinstitutionapprovedbythe Gov ernment †¢Donation to socioeconomic or cultural development institution established in Bangladesh by Aga Khan Development Network National Board of Revenue (NBR), Bangladesh. Page 16 of 31 Who should submit Income Tax Return? †¢If total income of any individual other than female taxpayers, senior taxpayers of 70 years and above and retarded taxpayers during the income year exceeds Tk 1,65,000/-. If total income of any female taxpayer, senior taxpayer of 70 years and above and retarded taxpayer during the income year exceeds Tk 1,80,000/-. †¢If any person was assessed for tax during any of the 3 years immediately preceding the income year. †¢A person who lives in any city corporation/paurashava/divisional HQ/district HQ and owns a building of more than one storey and having plinth area exceeding 1,600 sq. feet/owns motor car/owns membership of a club registered under VAT Law. †¢If any person subscribes a telephone. If any person runs a business or profession having trade license. †¢Any professional registered as doctor, lawyer, income tax practitioner, Chartered Accountant, Cost & Management Accountant, Engineer, Architect and Surveyor etc. †¢Member of a Chamber of Commerce and Industries or a trade Association. †¢Any person who participates in a tender. †¢A person who has a Taxpayer's Identification Number (TIN). †¢Candidate for Union Parishad, Paurashava, City Corporation or Parliament. Time to Submit Income Tax Return: For CompanyBy fifteenth day of July next following the income year or, where the fifteenth day of July falls before the expiry of six months from the end of the income year, before the expiry of such six months. For Other than Company Unless the date is extended, by the Thirtieth day of September next following the income year. Consequences of Non-Submission of Return †¢imposition of penalty amounting to 10% of tax on last assessed income subject to a minimum of Tk. 1,000/- †¢In case of a continuing default a further penalty of Tk. 50/- for every day of delay.National Board of Revenue (NBR), Bangladesh. Page 17 of 31 Assessment Procedures: †¢For a return submitted under normal scheme, assessment is made after hearing. †¢For returns submitted under Universal Self Assessment Scheme, the acknowledgement slip is determined to be an assessment order. Universal Self Assessment is of course subject to audit. Appeal against the order of DCT: A taxpayer can file an appeal against DCT's order to the Commissioner (Appeals)/Additional or Joint Commissioner of Taxes (Appeals) and to the Taxes Appellate Tribunal against an Appeal order. Tax withholding functions:In Bangladesh withholding taxes are usually termed as Tax deduction and collected at source. Under this system both private and public limited companies or any other organization specified by law are legally authorized and bound to withhold taxes at some point of making payment and deposit the same to the Go vernment Exchequer. The taxpayer receives a certificate from the withholding authority and gets credits of tax against assessed tax on the basis of such certificate. Heads of Income Subject to deduction or collection of income tax at source with specified rates of deduction. |No. Heads |Section/Rule |Rate |Chalan in the | | | | | |name of | |1 |Salaries | | |Respective | | | |Section 50 |deduction at average rate |Zone | |2 |Discount on the real value of | |deduction at normal rate or maximum rate |LTU | | |Bangladesh Bank Bills |Section 50A |whichever is greater. | |3 |Interest on securities |Section 51 |10%on interest or discount |LTU | |4 |Supply of goods and execution of | |nil up to 1 lac, 1-5 lacs |Zone-2 (Partly) &| | |contracts and sub-contracts |Section |(1%), 5-15 lacs (2. 5%), 15- |LTU | | | |52(Rule 16) |25 lacs 3. 5% and 25 lacs and above | | | | | |(4%) | | National Board of Revenue (NBR), Bangladesh. Page 18 of 31 |5 |Indenting commission / Shipping | |3. 5% of the to tal receipt of indenting |Zone-2 | | |agency commission |Section 52 (Rule 17) |commission & 5% of total Shipping agency | | | | |commission receipt | | |6 |Royalty, Fees for professional or | | |Zone-8 | | |technical services |Section 52 A |10% of the fees | | |7 |Stevedoring agency & Security |Section 52 | |Ctg. Zone- | | |service |AA |7. 5% of the fees |2 | |8 |C & F agency commission |Section 52 | |Zone-2 | | | |AAA |7. 5% of the fees | | |9 |Sale of bandrolls ( for biri) | | |Respective | | | |Section 52B |6% of the value of bandrolls. Zone | |10 |Compensation for acquisition of | |6% of the compensation money |Zone-2 | | |property |Section 52C | | | |11 |Interest on saving instruments | |10% of the amount of interest (Current |Zone-2 | | | |Section 52D |rate) | | |12 |Collection of tax from brick | |1 Sec. = Tk. 10,000/ for each brick field. |Respective | | |manufacturers | |1. 5 Sec. = Tk. 2,000/ for each brick |Zone | | | | |field. | | | | |Section 52F |2 Sec. = Tk. 18,000/ f or each | | | | | |brick field. | | |13 |Commission on Letter of | |5% of the amount of commission. |LTU | | |Credits |Section 52I | | | |14 |Issuing & Renewal of trade | Tk 500/- For renewal of each |Zone-3 | | |licence |Section 52K |Lincence | | |15 |Trustee fees |Section 52L |10% | | |16 |Frieght Forward agency | | | | | |Com. |Section 52M |7. 5% | | |17 |Rental power |Section 52N |4% | | |18 |Import of goods |Section 53 (Rule17A) | |Zone-2 | | | | |3% of the value of imports. | |19 |Income from house property (house | |No deduction if monthly rent is below |Zone-2 | | |rent) | |20,000/- |Dha & Other | | | |Section 53A (Rule17B)|3% (if monthly rent is |outside | | | | |20,000-40,000 Tk. ) and |Zone | | | | |5% (if monthly rent is above | | | | | |40,000 Tk. | | |20 |Shipping business of resident | | |Zone-2,ctg | | | |Section 53AA |5% of freight | | |21 |Export of manpower |Section 53B (Rule | |Zone-2, dhk & ctg| | | |17C) |10% of the service charges. | | |22 |Export of Knitwear |Section 53BB |0. 25% |Zone-5 | |23 |Member of Stock |Section | |Zone-7 | | |Exchange |53BBB |0. 015% | | |24 |Export of goods except |Section |0. 25% |Zone-5 | National Board of Revenue (NBR), Bangladesh. Page 19 of 31 |Knitweare & Woven garments |53BBBB | | | |25 |Sale of goods by public auction |Section 53C (Rule | |Zone-2 | | | |17D) |5% of the sale price | | |26 |Courier Service (Non- resident) | | |Zone-6 | | | |Section 53CC |7. 5% | | |27 |Payment to film actors and actresses| |5% of the amount paid exceeding |Zone-2 | | | |Section 53D (Rule |Tk. 6000/- | | | | |17E) | | | |28 |Cash subsidy |Section 53DD |5% |Zone-5 | |29 |Commission Fees or discount paid to| | |Zone-2 & LTU | | |distributors |Section 53E (Rule |7. 5% of the amount of commission. | | | | |17G) | | | |30 |Commission or charges paid to the | | |Dhk. Zone- | | |agents of foreign buyers | | |6, | | | | | |Ctg.Zone-3 and | | | | |4 % on the amount of commission or charges. |Zone of | | | |Section 53EE | |Respect ive | | | | | |Division | |31 |Interest on bank deposits |Section 53F (Rule |10% of the amount of interest. |Zone-1 | | | |17H) | | | |32 |Real Estate & Developers | |In case of Bldg. 250 per sq. eter |Zone-5 | | | | |In case of land 5% of deed value | | | | |Section 53FF | | | |33 |Insurance commission | |3% on the amount of commission |LTU | | | |Section 53G | | | |34 |Commission paid to the Surveyors of | | |Dhk. Zone- | | |General Insurances | | |2, | | | | | |Ctg. Zone-3 and | | | | |7. 5% on the amount of commission. Zone | | | |Section 53GG | |of | | | | | |Respective | | | | | |Division | |35 |Transfer of property |Section 53H (Rule |5% of the value of the property. |Survey | | | |17I) | |Zone | | |Interest on Post Office | |No deduction if the amount of interest does|Zone-2 | | |Savings Bank Account | |not exceeds Tk. 1,50,000 and if exceeds | | | | |Section 53I |then 10% on the amount of interest . | | |36 |Rent of vacant land, plant and | No deduction if monthly rent is b elow |Zone-2 | | |machinery | |15,000/- | | | | |Section 53J (Rule |3% (if monthly rent is | | | | |17BB) |15,000 -30,000 Tk. ) and | | | | | |5% (if monthly rent is above | | | | | |30,000 Tk. ) | | National Board of Revenue (NBR), Bangladesh. Page 20 of 31 |37 |Advertising bill of news paper, | | |Zone-5 | | |magazine, private television | |3% of the value of the property. | | |channel |Section 53K | | | |38 |Dividend | | |LTU (only LTU’s | | | | |(1) Resident individual 10%, non-resident |files) all others| | | |Section 54 |individual 25% (2) Company 15% |Zone-2 | |39 |Income from lottery |Section 55 |20% of the amount won. |Zone-2 | |40 |Income of non-resident Other than | |Company – rate applicable to the com. Other|Zone-6 | | |non- resident Bangladeshi} |Section 56 |than company – maximum rate. | | Major areas for final settlement of tax liability:Tax deducted at source for the following cases is treated as final discharge of tax liabilities. No additional tax is charged or refund is allowed in the following cases:- †¢Supply or contract work †¢Band rolls of hand made cigarettes †¢Import of goods †¢Transfer of properties †¢Export of manpower †¢Real Estate Business †¢Export value of garments †¢Local shipping business †¢Royalty, technical know-how fee †¢Insurance agent commission. †¢Auction purchase †¢Payment on account of survey by surveyor of a general insurance company †¢Clearing & forwarding agency commission. †¢Transaction by a member of a Stock Exchange. †¢Courier business †¢Export cash subsidy Tax Recovery System:In case of non-payment of income tax demand the following measures can be taken against a taxpayer for realization of tax:- †¢Imposition of penalty †¢Attachment of bank accounts, salary or any other payment. †¢Filing of Certificate case to the Special Magistrate. National Board of Revenue (NBR), Bangladesh. Page 21 of 31 Advanc e Payment of Tax: Every taxpayer is required to pay advance tax in four equal installments falling on 15th September; 15th December; 15th March and 15th June of each year if the latest assessed income exceeds Taka three lakh. Penalty is imposed for default in payment of any installment of advance tax. Fiscal incentives : Following are fiscal incentives available to a taxpayer: )Tax holiday: Tax holiday is allowed for industrial undertaking, tourist industry and physical infrastructure facility established between 1st July 2008 to 30th June 2011 in fulfillment of certain conditions. Industrial Undertaking Eligible for Tax holiday: (i)An industry engaged in production of textile, textile machinery, jute goods, high value garments, pharmaceuticals, melamine, plastic products, ceramics, sanitary ware, steel from iron ore, MS Rod, CI Sheet, fertilizer, insecticide & pesticide, computer hardware, petro-chemicals, agriculture machinery, boilers, compressors, basic raw materials of drugs, c hemicals and pharmaceuticals. (ii)An industry engaged in agro-processing, ship building, diamond cutting. Physical Infrastructure Eligible for Tax holiday:Sea or river port, container terminals, internal container depot, container freight station, LNG terminal and transmission line, CNG terminal and transmission line, gas pipe line, flyover, mono rail, underground rail, telecommunication other than mobile phone, large water treatment plant & supply through pipe line, waste treatment plant, solar energy plant, export processing zone. Tourism Industry Eligible for Tax holiday: Residential hotel having facility of three star or more. b)Accelerated depreciation: Accelerated depreciation on cost of machinery is admissible for new industrial undertaking in the first year of commercial production 50%, in the second year 30% and in the third year 20%. )Income derived from any Small and Medium Enterprise (SME) engaged in production of any goods and having an annual turnover of not more than taka twenty four lakh is exempt from tax. d)Industry set up in EPZ is exempt from tax for a period of 10 years from the date of commencement of commercial production. e)Income from fishery, poultry, cattle breeding, dairy farming, horticulture, floriculture, mushroom cultivation and sericulture are exempt from tax up to 30th June, 2011, subject to investing at least 10% of the exempted income that exceeds one lakh Taka, in government bonds. National Board of Revenue (NBR), Bangladesh. Page 22 of 31 f)Income derived from export of handicrafts is exempted from tax up to 30th June, 2011. )An amount equal to 50% of the income derived from export business is exempted from tax. h)Listed companies are entitled to 10% tax rebate if they declaredividend of 20% or more. i)Income from Information Technology Enabled Services (ITES) business is exempted up to 30th June, 2011. Avoidance of Double Taxation Agreement: There are agreements on avoidance of double taxation between Bangladesh and 28 co untries which are:- (01) United Kingdom of Great Britain and Northern Ireland (02) Singapore (03) Sweden (04) Republic of Korea (05) Canada (06) Pakistan (07) Romania (08) Sri Lanka (09) France (10) Malaysia (11) Japan (12) India (13) Germany 14) The Netherlands (15) Italy (16) Denmark (17) China (18) Belgium (19) Thailand (20) Poland (21) Philippines (22) Vietnam (23) Turkey (24) Norway (25) USA (26) Indonesia (27) Switzerland (28) Oman. National Board of Revenue (NBR), Bangladesh. Page 23 of 31 Steps for collecting Income Tax in Bangladesh Submission of income tax returns is generally due by: > 30th September in case of non-companies and > 31st December in case of companies. Assessment is made in several procedures. They are: ? Self assessment ? Presumptive assessment ? Spot assessment ? Pre-audit based assessment. However, certain percent of self assessment cases are selected for audit.Assesses can prefer appeal if aggrieved by his assessment. There are three primary forums for a ppeal. They are to the Appellate Commissioner/Additional Commissioner/Joint Commissioner or to the Commission for reviews. The decisions of Appellate Commissioner/Additional Commissioner/Joint Commissioner can be challenged to the next Appellate Court named as Appellate Tribunal. Withholding tax is levy able on a number of items including contractors, imports, transfer of urban land/building, bank deposits etc. National Board of Revenue (NBR), Bangladesh. Page 24 of 31 Procedure of Assessment Generally the followings steps are followed in case of Assessment of theCompany and the Corporation: Step-1 Computation of Business Income Step-2 Computation of Total Income Step-3 Determination of Total Tax Liabilities Step-4 Determination of Net Tax Liabilities According to Sections 28, 29 and 30 of ITO, 1984 Income from business is to be calculated after considering admissible and inadmissible expenses to this end. Total Income of the Company is to be calculated by adding other income with i ncome from business. Total Tax liabilities are to be determining by applying prescribed tax rate. Net Tax liability is to be ascertained by deducting the following tax rebate from Total Tax liabilities: >10% Tax rebate on foreign income Tax rebate on increased production in case of industrial company, if applicable. >Tax rebate on export income (at rate applicable) >Tax rebate and average rate on tax free income. National Board of Revenue (NBR), Bangladesh. Page 25 of 31 Problems for collecting Income Tax Tax avoidance is one of the main problems for collecting Income Tax by the Income Tax Authority in Bangladesh. It is the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes by illegal means. The term tax mitigation is a synonym for tax avoidance.Its original use was by tax advisors as an alternative to the pejorative term of tax avoidance. Latterly the term has also been used in the tax regulations of some jurisdictions to distinguish tax avoidance foreseen by the lawmakers from tax avoidance which exploits loopholes in the law. Based on these concepts arises the pillars of Tax Protesters as well as Tax Resistance: Some of those attempting not to pay tax believe that they have uncovered interpretations of the law that show that they are not subject to being taxed: these individuals and groups are sometimes called tax protesters. An unsuccessful tax protestor has been attempting openly to evade tax, while a successful one avoids tax.Tax resistance is the declared refusal to pay a tax for conscientious reasons (because the resister does not want to support the government or some of its activities). Tax resistors typically do not take the position that the tax laws are themselves illegal or do not apply to them (as tax protesters do) and they are more concerned with not paying for particular gover nment policies that they oppose. National Board of Revenue (NBR), Bangladesh. Page 26 of 31 Responses to tax avoidance: Avoidance also reduces government revenue and brings the tax system into disrepute, so governments need to prevent tax avoidance or keep it within limits. The obvious way to do this is to frame tax rules so that there is no scope for avoidance. In practice, this has not proved achievable nd has led to an ongoing battle between governments amending legislation and tax advisors' finding new scope for tax avoidance in the amended rules. Tax evasion: By contrast, tax evasion is the general term for efforts by individuals, firms, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability, and includes, in particular, dishonest tax reporting (such as declaring less income, profits or gains than actually earn ed; or overstating deductions). Illegal income and tax evasion:Who earn income by illegal means (gambling, theft, drug trafficking etc. ) is required to report unlawful gains as income when filing annual tax returns. Suspected lawbreakers have therefore been charged with tax evasion when there is insufficient evidence to try them for their non-tax related crimes. Other times, tax evasion can be used as a â€Å"one more nail in the coffin† by prosecutors by stating that if a person earns illegal income, s/he may also be guilty of tax evasion. Those who attempt to report illegal income as coming from a legitimate source could be charged with money laundering. National Board of Revenue (NBR), Bangladesh. Page 27 of 31 Evasion of Value Added Tax (VAT):During the latter half of the twentieth century, Value Added Tax (VAT) has emerged as a modern form of consumption tax through the world. Producers who collect VAT from the consumers may evade tax by under-reporting the amount of sa les. Control of evasion: Level of evasion depends on a number of factors one of them being fiscal equation. People's tendency to evade income tax declines when the return for due payment of taxesisnotobvious. Evasionalsodependsontheefficiencyofthetax administration. Corruption by the tax officials often render control of evasion difficult. Tax administrations resort to various means for plugging in scope of evasion and increasing the level of enforcement.Public opinion on tax avoidance: Tax avoidance may be considered to be the dodging of one's duties to society, or alternatively the right of every citizen to structure one's affairs in a manner allowed by law, to pay no more tax than what is required. Attitudes vary from approval through neutrality to outright hostility. Attitudes may vary depending on the steps taken in the avoidance scheme, or the perceived unfairness of the tax being avoided. Corruption by tax officials: Corrupt tax officials cooperate with the tax payers who int end to evade taxes. When they detect an instance of evasion, they refrain from reporting in return for illegal gratification or bribe.Corruption by tax officials is a serious problem for the tax administration in a huge number of underdeveloped countries. National Board of Revenue (NBR), Bangladesh. Page 28 of 31 The distinction in various jurisdictions of Tax Evasion and Tax Avoidance: The use of the terms tax avoidance and tax evasion can vary depending on the jurisdiction. In general, the term â€Å"evasion† applies to illegal actions and â€Å"avoidance† to actions within the law. The term â€Å"mitigation† is also used in some jurisdictions to further distinguish actions within the original purpose of the relevant provision from those actions that are within the letter of the law, but do not achieve its purpose. National Board of Revenue (NBR), Bangladesh. Page 29 of 31 ConclusionThough the rate of tax revenue is to GDP is very negligible, despite the gover nment is trying to maximize its tax revenue through different method. But the government should also remind the cannon of convenience while collecting tax from assesses. As we are living in a civilized society – should come forward to pay taxes to government in order to conduct the administrative, defense and development activities of the country. Otherwise we would not be able to prove ourselves as civilized people. Tax is the most important in the hand of the government to control the economy as well as the inflection. It also helps in push money to the economy, develop certain source of the economy and control some other activities of the economy.No Government can run it’s and perform administration works without collecting tax as a source of revenue. So, the Government imposes tax over the company and the corporations. On the other hand Government can also intensive to the infant and certain basic industry for protection through its tax policy. National Board of Re venue (NBR), Bangladesh. Page 30 of 31 ? The End ? National Board of Revenue (NBR), Bangladesh. Page 31 of 31 ———————– [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [? ] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic]

Advertising and Its Effect on the Demand Curve

THE UNIVERSITY OF QUEENSLAND ECON7002 Markets in Action Advertising and its effect on the demand curve Markets in Action Advertising and its effect on the demand curve Advertisement has always been an important market strategy for firms to accomplish their goals. From cereal companies to airline companies, it is inevitable to go through the process of advertising. However, what purpose does advertising serve for consumers and suppliers in the market? In this report, it is to examine the relationship between advertising and the market demand curve.Moreover, the impact that advertising brings toward the consumers and the company supplying the product or service. It is no doubt that peoples’ income is always limited relatively to peoples’ wants. Consumers therefore have to make choices among different products and services (P&S) to satisfy their unlimited wants with limited income. Firms take advantage of this issue by advertising the P&S they produce to increase their pro fits. There are two primary motives for companies to advertise their products and services.The first motive is to shift the demand curve to the right, meaning an increase in market demand for a product/service. The second motive is to lower the elasticity of the demand curve, meaning the demand for a product/service is less affected when the price of that product/service changes (Sloman, Norris & Garratt 2010). There are a number of reasons that causes a demand curve to shift to the right. In the case of advertisement, changing the preferences and tastes of the consumers can have a significant effect on demand.By enhancing the taste and preference of consumers, it draws new and inexperienced customers to purchase the product/service (Acharyya & Mukherjee 2003). Therefore, advertising brings a firm’s product/service to more people’s attention and increases the people’s desire for purchasing it. Advertisements can also eliminate the possible limitations in the kno wledge of consumers and familiarize them with new information about the product/service. Consumers can not review the qualities and values for most products and services in the market until it is purchased, such as kitchen appliances or automobiles.With providing information about the product/service by advertisements, the firm aims to influence the purchasing decision and raise the willingness to pay of the consumers (Erdem, Keane & Sun 2007). For example, SONY can change the consumer’s purchasing preference and taste by conducting a computer technology exhibition that displays the relevant technology information about the computers. Another example is McDonalds creating a television commercial about shaker fries to inform customers about this new product. Below is a figure illustration that shows the effect of advertising by a rightward shift in the demand curve.With the supply curve unaffected, it can be seen that the quantity demanded increases from Q to Q’ when th e demand curve shifts to the right. As for the price of the product/service, it increases from P to P’. Figure1. Effect of advertising by a rightward shift in the demand curve Price elasticity is the responsiveness of consumer demand when the price of the product/service rises or falls. Firms therefore use advertisements to affect consumers purchasing decisions by compelling people to buy their product/service over competitors. This means to make their product/service highly inelastic relatively compared to their competitor’s substitutes.So what factors influence the price elasticity of demand? In this report, five determinants are examined. The first factor is the number and closeness of substitute product/service. For companies that have monopoly power such as oil and electricity, an advertising scheme is usually unnecessary as consumer demand are already consistent regardless of a change in price. On the other hand, firms that have competitors attempts to use advert ising plans to create product differentiation. The second factor is the proportion of income spent on the product/service.Product/service purchases which have a small portion to total expenditure tends to have a lower elasticity, since consumers has less difficulty with the extra expenditure when prices go up. For example, salt and pepper. The third factor is whether the product/service is a luxury or a necessity. Products/services which are necessary goods tend to be more inelastic as they are used to fulfill the basic needs of a consumer even if the prices go up. Whereas luxury goods are more elastic as purchases can be postponed to the future. For example, laundry detergent is a necessity and Tiffany & Co jewelry is a luxury.The forth factor is whether or not the product/service is addictive. Products/services that are habit forming tend to be inelastic as they are required to satisfy the habit of the consumer. For example, cigarettes and alcohol beverages are addictive goods. Th e last but not the least factor is the amount of time consumers have to respond to a change in the price. With a longer time period, the elasticity of demand is more elastic as consumers have more time to adjust their purchasing habit (Welker 2010). In a competitive industry such as electronic products and clothing, the demand curves are most likely elastic.Advertising attempts to make the demand curve of the product/service more inelastic by utilizing the first and third factor in the previous paragraph. Creating more product differentiation to their substitutes and making their products as a necessity. A major method of product differentiation is to instill consumers with brand loyalty. With brand loyal consumers, they are willing to purchase at higher price for the intangible effects of the product/service. Slogans and Logos are popular schemes to familiarize consumers with brand names and increase brand loyalty (Patti 1977).For example, â€Å"Because you are worth it† by L’Oreal Cosmetics and â€Å"Buy it, sell it, love it† from eBay (Oak 2011). Advertisements can change the consumer’s relative evaluation of substitutes by leading them to believe that the substitute brands are inferior. For example, commercial battles between Apple and Blackberry. Nowadays, persuasive advertisements have reshaped the purchasing habit of consumers with culture and life background, leading consumers to think products/services are a necessary good such as cereals for breakfast (Acharyya & Mukherjee 2003).Next page is a figure illustration that shows the effect of advertising by a decrease in elasticity in the demand curve. With the same price rise P to P’, it can be seen that the quantity demanded decreases by a larger amount from Q to Q1 when the demand curve is elastic (curve D). On the other hand, the more inelastic curve (curve D’) has a relatively smaller quantity decrease from Q to Q2. Figure2. Effect of advertising by a decreas e in elasticity in the demand curve Figure3. Effect of advertising by a change in the demand curve With both a decrease in elasticity and a rightward shift in the demand curve, sales are increased from Q?P to Q’? P’. This is due to firms can now charge a higher price in a less competitive environment. So how do companies advertise their products/services? Firms advertise advertisement through a number of mediums, including emails and mails such as Dominos pizza, magazines such as Marc Jacob, bulletin boards such as Billabong, Radio announcements such as AAMI, television ads such as Optus and Yellow pages etc. Companies spend a significant amount of capital and time to plan a strategy to persuade people to purchase products.Some common strategy techniques includes celebrity testimonial, claiming that their products is desirable and consumed by many people, authority endorsements, slogan and logos etc (Gladen 2008). An advertising strategy of Apple is to gain brand loyal ty of consumers while charging at a higher price. Apple posts new advertisements continuously on the internet with branding strategy that focuses on peoples’ emotion such as lifestyle, imagination, aspirations, passion and dreams. It also uses advertisements to show an indefinable â€Å"cool† element associated with every new innovation devices that they produce.The demand for Apple products will therefore inevitably be increased by bringing in new customers and increasing the desire of purchase. Another technique is to show that competitors such as Microsoft PCs and Blackberry phones are an inferior product. For example, Apple created the ad â€Å"Mac vs. PC (Deny or allow)† to indicate that it is worth paying higher price for a virus-free Mac then a Microsoft PC (Marketing minds, 2011). For cosmetic brand Cover Girl, one of their strategies is to create a slogan to facilitate brand recognition. This leads to product demand curve becoming more inelastic.Almost all firms create a unique slogan to bolster and augment its business branding. Cover Girl uses â€Å"Easy, Breezy, Beautiful, Cover Girl† as their slogan in advertisements. Moreover, they use celebrity endorsements including Rihanna, Taylor Swift, Jennifer O’Nell and etc. as the face of their brand. Cover Girl also has a $100,000 US contact with America’s next top model every season (the most global popular modeling reality TV show). Celebrity enforcements work in a way that consumers identify themselves with the celebrity in the advertisements, and are mostly likely to increase demand in targeted consumers (Wikipedia, 2011).Advertisements have both advantages and disadvantages towards the consumers and the company supplying the products/services. The advantages for consumers include alerting people to products/services that fulfills the niche requirements they have such as tastes, preference, lifestyle and etc. Moreover, consumers have better access to the prod uct/service information and guidance. On the other hand, disadvantages include overstating the effectiveness of the product/service and mislead the consumers to make bad purchasing decisions.It also creates dissatisfaction for some people as their income cannot afford the desired product. Advertising appeals can also affect people’s health by promoting alcohol and cigarettes. For companies that supplies the products and services, advantages include increasing the exposure and awareness of the new developed products/services to consumers. Increase sales and profit if advertising scheme is successful. The form of online advertising using YouTube and other video sharing websites decreases the costs of supply.However, disadvantage includes spending excessive money on celebrity endorsements or on AFL half-time broadcast with no significant profit gains (Akrani 2010). Successful firms have a good understanding in who purchases their products, why consumers purchase their products a nd what advertising strategy to utilize to influence consumers purchasing decision. From this report, it can be seen that companies use a variety of advertisement plans to increase the demand of their products/services as well as to reduce the elasticity of the products/services.By changing the demand curve with a rightward shift and with a steeper slope, the main goal that firms are trying to achieve is to increase the sales and profits. Some advertising strategies might induce disadvantages to consumers and suppliers, but with suppliers applying the most suitable strategy by research and evaluation, it is more likely that both parties will benefit from the advertising result. Reference Sloman, J, Norris, K & Garratt, D 2010, Principles of economics, 3rd edition, Pearson Australia, NSW Australia Acharyya, R & Mukherjee D 2003, ‘Advertisement and Markets’, Economic and political weekly, Vol. 8, No. 50, pp. 5236-5239 Erdem, T, Keane, MP & Sun, B 2008, ‘The impact o f advertising on consumer price sensitivity in experience goods markets’, Quant market economics, Vo. 6, pp. 139-176 Patti, CH 1977, ‘Evaluating the role of advertising’, Journal of advertising, Vol. 6, No. 4, pp. 30-35 Welker, J 2010, The role of advertising in determining price elasticity of demand, viewed 27 Sep 2011, http://welkerswikinomics. com/blog/2010/10/04/im-proud-to-be-a-canadian-and- i-like-beer/ Oak, M 2011, Famous commercial slogans, viewed 27 Sep 2011, http://www. buzzle. com/ articles/famous-commercial-slogans. tml Gladen, NR 2011, Advertising and persuasive strategies, viewed 28 Sep 2011, http://naomi- rockler-gladen. suite101. com/advertising-persuasion-techniques-a52647 Marketing Minds 2010, Apple’s branding strategy, viewed 28 Sep 2011, http://www. marketing minds. com. au/branding/apple_branding_strategy. html Wikipedia 2011, Cover Girl, viewed 28 Sep 2011, http://en. wikipedia. org/wiki/CoverGirl Akrani, G 2010, Advertising-Advertisi ng management features and benefits, viewed 29 Sep 2011, http://kalyan-city. blogspot. com/2010/07/5-ms-of-advertising-advertising. html

Factors of Chinese Art Market Essay

The Chinese possess the longest continuous cultural history of any of the peoples of the world (Sickman. L, 1968). In recent years, pushed by the huge economic growth in Asia, the fine art market rise sharply within Asia, especially China, changed the geographical structure of the global art market. The Chinese government set up some preferential policies to promote the fine art market because they see the great economic potential in this flied. In 2011, China has a 49% growth of artworks in auction revenue, becoming the first global marketplace for the sale of art. Although the transaction volume of China (10.8%) was behind USA and France, the auction revenue (41.4%) was the first of the world (Artprice, Trend of art market 2011) . This means China is becoming the central of high price fine art market. In 2011, a painting with calligraphy which was painted by Qi Baishi, †Eagle Standing on Pine Tree; Four-Character Couplet†¦Ã¢â‚¬  was sold for 4.255 Yuan(about 65 million US dollars) in Beijing by China Guardian auction company, a record high for contemporary and modern Chinese paintings and calligraphy(China Guardian Auctions). As Chinese fine art market growing quickly in last few years, more and more researches and studies have been done by both Chinese and other foreign people, this essay will focus on some factors behind the market and analysis how the factors influence the Chinese fine art market. And the analysis can be dividing into four sections, cultures, history events and policies, buyers and marketing channels. First of all, this essay is going to find out the difference between the western countries people and the Chinese people in culture of collecting aspect and work of art aspect. There is some strong culture which is really to be changed in any country and this will completely change the way people treat art works in a country. Just because people treat art works differently, every country’s fine art market culture is unique, and this can influence the market automatically. For example when Chinese people selling antiques, they always leave a large gap between the quote and the deal price to wait buyers to bargain because Chinese people believe buyers will feel happy and they have brought the antique in a cheaper price. Secondly, history events and policies linkage to the Chinese fine art market will be mentioned. Through the history events (such as the reform and open up in 1978 and joining the WTO in 2001) and policies (like import and export trading policies) to analysis how these events and changes influence the Chinese fine art market. A cultural repatriation has been in the spotlight a great deal from 2000, with the sale of the Yuan Ming Yuan bronze fountainheads, then the Chinese government has attach more importance to the fine art trade after it(Wang. A, 2012). Actually, modern Chinese fine art market starts after the reform and open up in 1978 and today becoming the first place of the marketplace for the sale of art. Also according the Tariff implementation plan 2012 of China, the import duty of art work decreased from 12% to 6% (General Administration of Customs of the People’s Republic of China), this promoted the fine art market, in the first half of 2012, the trading amounts reach 210.8 billion Yuan (Ministry of Culture of the People’s Republic of China), which means China has been overtaken the USA, becoming the top art market. Then, this paper will explore different kinds of buyers and find out their purchasing intention. In this section, it will be a case study about the different buyers by having an interview with an antiquary and a staff of an international auction company. Antique buyers have different purchasing intention; some of them are shop holders or agencies buying art works for selling, some of them are art fanciers buying art works for collecting, some of them buying art work as investment, and there are some people just want to show their social status or financial position through buying expensive art works. Through the interview, more purchasing intention will carry out so that it will be more clear that how different buyers can influence the fine art market all around the world differently. The last section of this essay will talk about the marketing channels aspect. Chinese antiques can be seen in auction houses, trade fairs, art galleries, fine art shops all around the world(Artprice, Trend of art market 2011), People come together to appreciate or buy antiques. Furthermore, some private trade happens a lot without noticed by the mass. Different marketing channels have its own characteristics and price levels so that it could attract its own target audience. Although the market of Chinese antiques is growing in a very high speed, some scholars still have some issues to worry. As Audrey Wang mentioned (2012), some speculators believed that Chinese art market is an indomitable force and become the first place in volumes of sale of fine art. On the other hand, sceptics claim that the current trend as merely a bubble and today’s China is not ready yet to experience a full economic cycle of growth and decline. When a group of Chinese curio dealer visit the 25th of TEFAF which hold in the Nederland, they were not only shocked by the fine art work’s quality and authenticity, but also the seller’s integrity and normative. When they ask for some background and information about an antique, the vendor just read from the testimonial but not making an attractive story. The Chinese fine art market is still not mature because more standard rules or policies are needed. Lastly, the high speed growth of the Chinese fine art market might cause some mislead about the art. Quite a lot of people will regard high price as high quality in the fine art market, this is completely a misunderstanding for the art works. Therefore some scholars argue that the great growth could destroy the culture and art, this will be also discussed in this essay. Bibliography: Sickman, L (1968) The Art and Architecture of China, Yale University Press, London Wang, A (2012) Chinese Antiquities, an introduction to the art market, Lund Humphries, Surrey. TEFAF https://www.tefaf.com/ Artprice, Trend of art market 2011 http://imgpublic.artprice.com/pdf/trends2011_en.pdf (2013-01-07) China Guardian Auctions http://english.cguardian.com/ (2013-01-07) Ministry of Culture of the People’s Republic of China http://www.chinaculture.org/index.html (2013-01-07) General Administration of Customs of the People’s Republic of China http://english.customs.gov.cn/tabid/47800/Default.aspx (2013-01-07)