According To The World Bank, Bhutan Ranked 81st In Ease Of Doing Business Report 2019

Email

The rankings were determined by sorting the aggregate scores on 10 parameters, each consisting of several indicators.

Sunrise in Punakha Valley. (Source: Bhutan Scenic Tours)

 

By Tshering Dorji | Kuensel

Bhutan’s ranking on the ease of doing business has been slipping over the last three years despite reforms and the former government’s pledge to take the country’s ranking to the top 50.

The World Bank’s Ease of Doing Business Report 2019 which compares business regulation for domestic firms in 190 economies, placed Bhutan in the 81st position, down from 73rd in 2018.

A high ranking on the ease of doing business index means that the regulatory environment is more conducive for the starting and operation of a local firm. The rankings were determined by sorting the aggregate scores on 10 parameters, each consisting of several indicators.

How did Bhutan fare in the South Asian region?

In last year’s report, Bhutan was considered the best place to do business in South Asia. This year, India tops the regional ranking at 77th place, up from 100th. Bhutan comes in second in the region followed by Sri Lanka ranking 100th, Nepal 110th, Pakistan 136th  and the Maldives at 139th position.

 

Source: Kuensel

 

Meanwhile, Afghanistan (167th) and Bangladesh (176th) are the lowest ranked economies in the region when it comes to doing business.

Among the ten parameters used, Bhutan’s top ranking was in the parameter that records tax payments, time taken and contribution rate for a firm to comply with all tax regulations.

In terms of paying tax, Bhutan ranks 15th among 190 economies. This is because of the introduction of electronic systems such as RAMIS.

“Bhutan made paying taxes easier by introducing an online platform for filing corporate income tax and personal income tax returns,” the report states.

The ranking of Bhutan based on various other parameters

As for two other parameters- trading across borders and enforcing contracts, Bhutan ranked 28th. This translates into about nine hours of trading time consumed in documentary compliance which costs around USD 50 and another five hours in border compliance, which costs another USD 59.

This is with regards to export and for the sake of assessment. The distance from the capital city (Thimphu) to the nearest border was also taken into account.

 

Source: Kuensel

 

It takes 225 days to enforce a contract, with each contract costing 23 percent of the contract value.

Bhutan is ranked 54th in the terms of ‘registering property’ parameter. According to the report, there are three procedures involved in registering a property and it takes 77 days. The quality of land administration is rated 23.5 out of 30.

The country ranks 73rd in ‘getting electricity.’ It involves four procedures and takes 61 days to get electricity connection. The score on reliable power supply and the transparency of tariff is four out of eight.

On getting credit, Bhutan is ranked 55th as the credit bureau coverage is only about 35.9 percent of the adults. Dealing with construction permit is another parameter where the country is ranked 88th. There are 21 procedures involved and it takes 150 days to get a permit.

It takes 12 days and 8 procedures to start a business in Bhutan, as per the report. The country is placed 91st for starting a new business.

With regards to protecting minority investors, the country is ranked 125th. Bhutan is also placed at 168th for resolving insolvency since there is no practice of bankruptcy yet and thus all scores in this parameter is null.

The importance of removing bureaucracy to promote the ease of doing business

The Ease of Doing Business Report 2019 advocates for both regulatory quality and efficiency.

“It is important to have effective rules in place that are easy to follow and understand. To realise economic gains, reduce corruption and to encourage SMEs to flourish, unnecessary red tape should be eliminated,” the report stated.

 

This article first appeared in Kuensel and has been edited for the Daily Bhutan.

 


Related Posts

Bhutan’s DHI Business Acceleration Programme Partners With the...

The press release states that DHI has hired the services of IC2 Institute under the University of Texas, USA as a...

Oct 16, 2018 17:08

Start-up Centre In Bhutan Held Session To Provide Advice On Doing...

Guidance was provided during the first session on starting a business held at the newly established start-up centre at...

Aug 14, 2018 12:06

Start-Up Centre Inaugurated In Thimphu To Help Aspiring...

The centre is expected to facilitate entrepreneurs for sustainable economic growth.

Jun 29, 2018 13:17

Bhutan’s First Entrepreneurship Festival Held In Thimphu To...

A book entitled “Entrepreneur Stories” was also launched at the opening of the festival. The stories are expected to...

Oct 29, 2018 15:48

Cultivation Of Green Tea Is A Lucrative Business For The Folks Of...

The local elders said that the green tea was first brought to Bhutan by the Second Druk Gyalpo.

Aug 20, 2018 17:16

Community Based Care Centre Seeks To Establish Commercial Flower...

The community based care centre also offers a range of services to individuals and families infected and affected by HIV...

Jun 11, 2018 14:27

Latest

News

USD 25.3m Green Climate Fund To Address Climate Change Adaption In Bhutan

The project can help address climate change adaptation challenges facing Bhutan, particularly in the agriculture sector.

Jan 15, 2020 16:28

Bhutan’s Target To Become A 100% Organic Nation By 2020 Delayed – Pushed To 2035

Efforts to translate Bhutan’s organic vision into reality has met with various challenges thus far.

Jan 04, 2020 23:28

Features

Losar Tashi Delek - How The Bhutanese Celebrate The Year Of The Male Iron Rat

According to the Bhutanese calendar, Losar falls on 25-26 January this year.

Jan 26, 2020 18:28

Enduring Values From The Tale Of The Four Harmonious Friends

A parable steeped in Buddhism, the didactic tale of the four harmonious friends is regarded as the national folklore of Bhutan.

Jan 23, 2020 17:58

Sports

Karma – Female Archer From Bhutan Qualified For Tokyo 2020 Olympic Quota

Karma has been specialising in Olympics-style archery since 2009.

Nov 30, 2019 13:18

Bhutan’s Pelden Wangchuk Wins 10th Edition Of Tour 0f Dragon Mountain Bike Race

This year, the race also saw the highest number of female participants compared to past years.

Sep 10, 2019 01:08

Business

Economic Roadmap Needed To Steer Bhutan Towards Higher GDP Growth

The Lyonchhen said that the economic figures will improve in 2020 as 70 percent of the capital investments still lie unused.

Jan 17, 2020 23:38

Celebrating Bhutan’s entrepreneurs: Tashi Wangdi of iHub

This story is part of an exclusive feature by Yeewong Magazine in Dec 2018 on celebrating entrepreneurship in Bhutan.

Jan 12, 2020 23:38

Travel

Forging the Unbeaten Trail Towards Wangdue Nye

When you dedicate year 2020 to hike on unbeaten trails in Bhutan.

Jan 21, 2020 10:58

Make Your Own Personalised Stamps And Discover Bhutan’s Postal History At The Postal Museum

The Bhutan Postal Museum in Thimphu is also a major tourist attraction.

Jan 18, 2020 21:08

Lifestyle

Bhutan- The Wedding Destination in Asia

Bhutan, a Himalayan kingdom, is a landlocked country located between China and India. With its reputation for mystery and magic, stunning...

Jan 23, 2020 09:07

Relish Your Taste Buds With 8 Delectable Bhutanese Staple Food

One of the best places to try authentic Bhutanese cuisine is through a homestay, where you will get to sample what most locals eat at home.

Jan 19, 2020 21:08

Subscribe to our newsletter

Never miss out on new happenings and news stories!

Download Daily Bhutan Mobile App

Connecting with us just got easier!