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By Sultana Habib A Step towards Paperless National Board of Revenue, Bangladesh: An Empirical Study By Sultana Habib MPPG 7th Batch Supervisor Prof. Sk. Tawfique M. Haque, PhD Thesis submitted to the South Asian Institute of Policy and Governance (SIPG) Program in partial fulfillment for the award of Master in Public Policy and Governance September 2018 South Asian Institute of Policy and Governance (SIPG) North South University, Dhaka, Bangladesh Dedications This paper is dedicated to my beloved children, who have been slightly deprived in terms of love and care of their mother during my study. ii Declaration I hereby declare that the dissertation entitled "A Step towards Paperless National Board of Revenue, Bangladesh: An Empirical Study" submitted to South Asian Institute of Policy and Governance Program (SIPG) at North South University, Dhaka, Bangladesh for the Degree of Master in Public Policy and Governance, is a record of an original work done by me under the guidance of Prof. Sk. Tawfique M. Haque, PhD, Director, SIPG and Chairman, PSS Department, North South University, Dhaka, Bangladesh. I have not copied any part of it from other sources without acknowledgement and I have not submitted the findings of the research to any other university or institute for any degree or diploma. Signature with Date Full Name: Sultana Habib ID No. 1725010085 iii Acknowledgement It is a great opportunity for me to study on the very contemporary issue like implementation of E-filing of income tax return at NBR, Bangladesh. The title of my research is "A Step towards Paperless National Board of Revenue, Bangladesh: An Empirical Study". Foremost, I want to offer this work to Almighty God for the wisdom, the strength, and the sound health He given upon me in order to complete the study. Then, I am thankful to many people in the entire journey of my research work, who provide me guidance and motivation to move forward when I lost my enthusiasm. I like to acknowledge those great contributions that make me capable to reach at the final stage. I would like to express my gratitude to my supervisor Prof. Sk. Tawfique M. Haque, PhD for his valuable advices, conceptual ideas, consistent supports, and constructive criticisms in spite of his extremely busy schedule. I acknowledge with thanks to the member of the MPPG research committee for their thought provoking ideas and guidance that lead to this accomplishment. I would also like to express my thanks to all the students of 7th batch of MPPG program for their constructive comments, supports, insights and criticism which enormously help to enrich my dissertation. Special thanks go to the program officer and other staffs of MPPG program, North South University for their continuous supports. I gratefully acknowledge the funding source from Norwegian government (NORAD) that enabled me to peruse one semester of my study in University of Bergen (UiB) Norway. I also owe to the faculties of Department of Administration and Organization Theory, University of Bergen for schooling me the Advanced Methodology for Social Research. I am highly indebted to Dr. Ishtiaq Jamil, Associate Professor, University of Bergen and Mr. Mizanur Rahman, Lecturer, PSS department NSU for disseminating their knowledge through a vigorous workshop on SPSS which help me to analyze the quantitative data accurately. I would also like to thank Hasan Muhammad Baniamin, PhD student, Department of Administration and Organization Theory, University of Bergen who have contributed greatly to enrich my literature review part. I would like to thank my seniors, colleagues and friends who help me to collect information during my fieldwork at NBR. Particularly, I am deeply indebted to Kalipada Halder, Member, NBR and PD, SGMP project at Government of Bangladesh who gave his valuable time for interview and in-depth consultation about E-filing. Lastly and most importantly, I acknowledge the sacrifices and encouragements of my beloved family members for their supports in all my pursuits. iv Abstract E-filing of income tax return can be seen as an important means to enhance the value of services to the citizen. It can be a vehicle for achieving the goal of vision 2021 that is, 'digitization of Bangladesh'. The study attempts to assess the present status of E-filing, efforts made in implementing E-filing system and explore issues, factors, challenges and opportunities associated with it. A combination of three models which include 'Policy Content and Context in Implementation' by Merilee S. Grindle (1980), Winter’s 'Integrated Model of Implementation (2003)' and 'Technology Acceptance Model (TAM)' suggested by Fred Davis in 1985, guide the study and provide the framework for analysis. The study considers 'Policy Content and Context in Implementation' as the content of policy creates action programs that lie in policy design and context of implementation influences the implementation process largely. Considering the reviewed literature and theoretical discussion, five independent variables have been identified as key determinants for this study. These are: Demographic variables, Content of Policies, Context of Implementation, Perceived Usefulness, and Perceived Ease of Use etc. Under the umbrella of NBR, six (6) different taxes zones of Dhaka and Chittagong are selected as the study area based on certain rationales; such as level of E-filing, significance of the service, ease of access to the service etc. This study follows a research design relied on both quantitative and qualitative data. Mixed method approach has been applied using documentary analysis, questionnaire survey, and interview. The study uses two sets of questionnaire, one is for taxpayers who have already used E-filing system and another one is for the manual filing user. Manual filing data are collected from individual taxpayers including income tax practitioners and lawyers while the E-filing data are taken from those taxpayers who have submitted their income tax return through online. The study conducts the ‘interviews’ among the policy makers who are directly involved with the issues and the field level implementers to have more in-depth understanding about the situations. The study also intends to involve some key respondents comprising of skilled IT personnel, and user of E-filing for interview. Both quantitative and qualitative data have been used for further analysis and inferences. The findings of the current research affirm the extent of implementation of E-filing with some observations and conditions. The dynamics that are emerged from the study can provide some understandings about the nature of the independent variables which can have greater impacts on implementation and some insights on explaining the factors that creates hindrance to the successful implementation of E-filing at NBR. The findings based on the primary data indicate that explanatory variables of the study can explain most of the variations of the level of implementation of E-filing at NBR. The findings seem to be healthy when a significant correlation is found among the indicators of perceived v ease of use and satisfaction of the taxpayer about E-filing. In contrast, the implementation of E-filing may not be successful due to upholding some challenges. Lacking of awareness among taxpayers, lacking of promotional activities, lacking of tax payment facility along with resource constraint are determined as the major obstacle in implementing E-filing. From the interview data, it appears that the mere introduction of E-filing is not adequate to have positive impact on job performance, the nature and the level of maturity of E-filing are also very important to have significant impacts on productivity. Proper implementation strategies like making the system compulsory to a specific group of taxpayers primarily, ample publicity, disseminate IT knowledge about E-filing through training, workshop among the users including service providers may enhance the implementation. The implementation of E-filing will be successful when it can provide a compulsory service delivery channel through the electronic platform. In addition, certain types of corruption like petty corruption done by the field level implementers can be reduced through the proper implementation of e-filing. Ultimately, the success of any technology based government service like E-filing program lies in how efficiently it can enhance people's participation in government functioning through ease of use. It appears that just the introduction of E-filing is not sufficient to achieve the goal of introducing E-filing at NBR but to implement the system successfully can provide greater impacts on entire governance. Surely, it is good start but the government should emphasize on its implementation strategy for enhancing direct tax collection. As revenue is known as the blood for development so this type of initiatives can accelerate the growth of revenue that can lead to the country to be a developed nation. Key words: E-filing, Digitization, Implementing E-filing system, Ease of Use, Implementation Strategies, Context of Implementation, Job Performance, etc. vi Table of Contents Acknowledgement ................................................................................................................ iv Abstract................................................................................................................................. v Table of Contents .................................................................................................................
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