There have been some policy discussions on tax law in Bangladesh, although not very effective. Income tax legislation dates back to the Income Tax Ordinance of 1984 and was promulgated under the military government. According to the 1984 ordinance there are seven forms of income on which tax is levied: wages, interest on securities, income from house or property, agricultural income, income from business or profession, capital gains and income from other sources (Manual on income tax Part -1, 2009). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Numerous efforts have been made to strengthen revenue mobilization and improve the tax structure. In 1991, Bangladesh initiated a major tax reform through the introduction of the VAT system. At the same time there has been a significant reduction in import tariffs. Prior to these reforms, trade-based taxes dominated Bangladesh's tax structure, with customs duties alone accounting for about a third of tax revenues during the country's first two decades of independence. After the introduction of VAT in 1991, the share of VAT revenue increased significantly to 29% in 2014, while the share of customs duties fell to 10.8%. Even though the basis of the VAT system has been broadened, numerous distortions have been introduced for reasons of political expediency. Due to these problems, the VAT system has significantly underperformed in terms of revenue generation compared to its potential. It is evident that a narrow tax base, widespread exemptions and administrative inefficiencies are the main factors behind the low tax-to-GDP ratio in Bangladesh compared to neighboring countries. This also implies that tax reforms in recent decades have not brought significant changes in Bangladesh's tax efficiency. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay In recent years, there has been a lot of simplification and rationalization introduced to reform the tax system. Tax assessments were made less complicated and an attempt was made to attract more taxpayers into the tax net. Automation of tax collection has been initiated and compliance with the standards and systems introduced by the WCO has increased. The practice of honoring contributors and recognizing their contributions has received institutional form in the NBR. In the case of legislative reforms, the new Value Added Tax and Supplementary Taxes Law of 2012 has been promulgated and will come into force from July 2016. A draft Direct Tax Code has been published on the website of the government and steps will be taken to have it approved by Parliament. by next year. There are plans for a full/maximum reduction in the rate of import duties and additional duties in the budget for the financial year 2016-17, which will ultimately shift the burden of revenue collection to personal and property tax company together with the value added tax (VAT).).