Bangladesh has created a fund for the garment industry which will be used to compensate workers or their children in case of injuries or death at the workplace. Garment factory owners have been urged to keep workers’ welfare in mind and give them a share of the annual profits as workers are the main instrument to keep their business operational.

Labor laws have been amended for the welfare of workers. Safety and security measures in garment industries and factories have been beefed up. Wages of workers in the readymade garment sector have been raised. Advance tax for readymade garment industries has been reduced to 0.70 per cent.

The income tax rate for green industries has been reduced to 10 per cent from 20 per cent, and 12 per cent from 20 per cent for other industries. The import tax on raw materials of prefabricated building and fire extinguishing equipment has been reduced to five per cent.

Bangladesh set a target of earning $50 billion from readymade garment exports by 2021. The readymade garment sector is vital for Bangladesh economy as it contributes immensely to the country’s export earnings, employment generation and value addition.