Bangladesh’s transformation into an export-based economy has been playing the most crucial role in graduation from LDC and in marching on to be a developed one. The government has been trying to facilitate business growth by taking different effective business-friendly strategies to speed up the transformation. The proposed policy to provide a number of facilities to local trade and businesses in the upcoming budget is another step of business-friendly attitudes. The decisions like VAT exemption for made-in-Bangladesh products, advance tax rates change and continuation of TAX exemption for women entrepreneurs and increasing advance income tax on imported products are expected to help flourish local industries to a great extent.

That the businessmen would face less complex procedures and spend less indirect cost in doing business to make the best of their capitals and flourish their industries is an expectation from a business perspective. Given that extending VAT waiver facilities for locally-produced electronics and electrical products and reducing advance tax by one percent from the current rate in the next budget will be a relief for the businessmen invested in those sectors and for the businessmen thinking of investing here. On the other hand, increasing advance income tax on imported luxury items and fragrance products will help grow these industries. Moreover, the decision to offer four agro-based sectors the tax exemption on revenue for the first ten years of the commercial production will generate new investments and create jobs in rural areas. If it happens so, it will boost domestic trade and investment.