The principal direct taxes are personal income taxes and corporate income taxes, and a VAT of 15% levied on all-important consumer goods. The top income tax rate is 25% and the top corporate rate is 40%. Publicly traded companies registered in Bangladesh are charged a lower rate of 35%. Effective 1 July 2002, the VAT rate on computer hardware and software was reduced to 7.5%, and certain agricultural equipment and electricity supplied to the agricultural sector was exempted from VAT altogether. VAT on the transfer of land is also to be abolished. Essential agricultural implements and irrigation pumps had previously been excluded from certain taxes.