Bangladesh has reduced tax in order to increase production
Bangladesh industry is very powerful and rapidly developing on large scale. Bangladesh decided to cut down taxes for their garment industry.
Bangladesh garment industry growth rate is more than 7 percent for the second running year. As far as gross domestic product is estimated it is expected to reach to 7.05 percent annual year including the increment in investment on infrastructure, energy sector and increment in private investment.
Bangladesh estimated one fourth of the total 160 million population, majority are living below the poverty line and they cannot enjoy the major facilities of life. Bangladesh has registered per annum growth of almost 6% every year since the change of age. The growth rate is good but it needs to reach to almost 8% in order to provide work to around 2 million of people every year.
Bangladesh being an underdeveloped country and despite lots of disasters and political issues keep growing and developing its garment industry and giving working opportunities to its people. According to statistics Bangladesh exports of clothing and garments increased by 10 percent in 2015. It is great success for Bangladesh.
Bangladesh is now focusing on reducing tax and it has reduced substantial tax from 35 percent to 20 percent on readymade garment sector.
It is announced that budgetary expenditure for financial year which is going to start in July seems to be 30% higher on the previous twelve months.