There have been some policy discussions on the tax law in Bangladesh, although not very effective. Income tax legislation dates back to the Income Tax Ordinance of 1984 and was promulgated during the military regime. According to the 1984 ordinance, there are seven forms of income on which tax is levied: salaries, interest on securities, income from housing or property, agricultural income, income from a business or profession, capital gains and income from other sources (Income Tax Manual, Part -1, 2009).Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original Essay A number of efforts have been made to strengthen revenue mobilization and improve the tax structure. In 1991, Bangladesh embarked on a major tax reform by introducing the VAT system. At the same time, import tariffs were significantly reduced. Before these reforms, trade-based taxes dominated Bangladesh's tax structure, with customs duties alone accounting for about a third of tax revenue during the first two decades of the country's independence. Following 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%. Although the base of the VAT system has been broadened, many distortions have also been introduced for reasons of political expediency. As a result of 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 Bangladesh's low tax-to-GDP ratio compared to neighboring countries. This also implies that tax reforms in recent decades have not brought about significant changes in Bangladesh's tax efficiency. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay In recent years, a lot of simplification and rationalization has been introduced to reform the tax system. Tax contributions were simplified and an attempt was made to bring more taxpayers into the tax net. Automation of tax collection has started and compliance with the standards and systems introduced by the WCO has increased. The practice of honoring taxpayers and recognizing their contribution has been given institutional form in BNR. In the case of legislative reforms, the new Value Added Tax and Additional Duties Act 2012 has been promulgated and will come into force in July 2016. A draft direct tax code has been published on the government website and steps will be taken to have it adopted by Parliament. by next year. There is provision for an overall/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 corporate income tax. companies as well as value added tax (VAT).).