Bhutan drops six places in ease of do­ing busi­ness

Business Bhutan - - Business - Dechen Dolkar from Thim­phu

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.

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