Bhutan drops six places in ease of doing business
Bhutan’s ranking on ease of doing business 2019 has dropped to 81st from 75th in 2018 among 190 countries.
It has been dropping since the last three years.
The rankings are determined by sorting the aggregate scores on 10 parameters, each consisting of several indicators.
In ease of doing business 2017, Bhutan was ranked 73rd, 71 in 2016 and 70 in 2015.
Bhutan was considered the best place to do business in South Asia in World Bank ease of doing business report 2018. However, India tops the regional ranking at 77th place, up from 100 this year. Bhutan comes second in the region with Sri Lanka ranking 100, Nepal 110, Pakistan 136 and the Maldives 139.
Afghanistan with 167 and Bangladesh 176 are the lowest ranked economies in the region when it comes to doing business.
The report also looks at how easy it is to start a business, get credit, pay taxes, and import and export procedures.
The introduction of online tax filing system, ‘RAMIS’, has made paying taxes easier. “Bhutan made paying taxes easier by introducing an online platform for filing corporate income tax and personal income tax returns,” the report states.
Bhutan ranks the best in paying taxes, which is at 15th among the 190 countries.
Bhutan ranked 28 among 190 countries in trading across the border parameter. Bhutan’s highest parameter score was recorded in this parameter with 94.25 points out of 100. This means import and export regulations and procedures are easier for Bhutanese businesses.
While importing and exporting are easy, getting credit is not a straight forward task for Bhutanese businesses. Bhutan is ranked 85th in ease of getting credit.
Dealing with construction permits parameter also ranked a lowly 88. The report states, construction permits takes more than five months to get finalized in Bhutan.
The report states that while ranks of 28th among 190 countries in enforcing contracts parameter and 54th for registering property parameter reflect well for Bhutanese business environment, it takes 61 days just to get electricity for a business in Bhutan.
The former government pledged to bring in reforms to take Bhutan into the top 50 of the rankings but this pledge has not translated into action as the rankings suggest.
Doing Business reforms affecting all sets of indicators included in this year’s report, implemented from June 2017 to May 2018.
The theme of this year’s report is training for reform.