Doing Business indicators likely to improve next year
Saturday, 6 June 2009
Munima Sultana
The country's Doing Business indicators are likely to improve next year following some systemic actions taken in 2008 and 2009 to reduce time and cost of doing business.
According to International Finance Corporation (IFC), an arm of World Bank, these actions have been taken in individual regulatory areas as well as at overall institutional level.
In a memoire prepared for the doing business measurement team that will assess the country's performance, the IFC said reforms were taken place in various government agencies.
They include Registrar of Joint Stock Companies and Firms, National Board of Revenue, Dhaka City Corporation, Power Development Board, Bangladesh Telecommunications Company Ltd, Chittagong Customs House and Water and Sewerage Authority.
The government will send the memoire to the Doing Business Measurement Team.
Official sources said though the memoire was prepared on the basis of information from different government and private offices, actual performance sheet of the country will be prepared by the doing business team after reviewing and evaluating the memoire.
The country's position in the Doing Business-2010 report, which was 110 among 181 countries in 2009, is dependent on implementation of reforms and their continuation, said an official preferring anonymity.
The IFC said that Regulatory Reform Commission (RRC) and Bangladesh Better Business Forum (BBBF) were established in 2007. RRC and BBBF later recommended several reforms, many of these were already implemented reducing the time and cost of business.
It said eight reforms have already been completed. Three reforms will reduce time associated with starting a business by about 32 days or 43 per cent of the current 73 days. Five other reforms done in dealing with licences can reduce the time by up to 121 days or 52.4 per cent of the current 231 days. Elimination of verification of Memorandum and Articles of Association has saved more than US$ 100 in cost.
However, three other reforms remain in the pipeline, which will reduce the number of days by another 30 days after the implementation.
Time to register property has also been cut by almost half, from 425 days to 245 days through reforms at the Sub Registry Office. upto 45 days or 18.4 per cent of the current 245 days. Four more reforms are also expected to reduce the time involved in property registration by up to 45 days or 18.4 per cent of the current 245 days.
According to the 2008-09 National Budget, the tax rate for publicly listed companies has been reduced from 30 per cent to 27.5 per cent. Meanwhile, the tax rate for non-listed companies has been reduced from 40 per cent to 37.5 per cent.
The major reform that the report mentioned was automation of Chittagong Customs House (CCH), which reduced 42 steps from 48 steps for import and export clearance processes. It also reduced the cost of doing business by 40-50 per cent.
The country's Doing Business indicators are likely to improve next year following some systemic actions taken in 2008 and 2009 to reduce time and cost of doing business.
According to International Finance Corporation (IFC), an arm of World Bank, these actions have been taken in individual regulatory areas as well as at overall institutional level.
In a memoire prepared for the doing business measurement team that will assess the country's performance, the IFC said reforms were taken place in various government agencies.
They include Registrar of Joint Stock Companies and Firms, National Board of Revenue, Dhaka City Corporation, Power Development Board, Bangladesh Telecommunications Company Ltd, Chittagong Customs House and Water and Sewerage Authority.
The government will send the memoire to the Doing Business Measurement Team.
Official sources said though the memoire was prepared on the basis of information from different government and private offices, actual performance sheet of the country will be prepared by the doing business team after reviewing and evaluating the memoire.
The country's position in the Doing Business-2010 report, which was 110 among 181 countries in 2009, is dependent on implementation of reforms and their continuation, said an official preferring anonymity.
The IFC said that Regulatory Reform Commission (RRC) and Bangladesh Better Business Forum (BBBF) were established in 2007. RRC and BBBF later recommended several reforms, many of these were already implemented reducing the time and cost of business.
It said eight reforms have already been completed. Three reforms will reduce time associated with starting a business by about 32 days or 43 per cent of the current 73 days. Five other reforms done in dealing with licences can reduce the time by up to 121 days or 52.4 per cent of the current 231 days. Elimination of verification of Memorandum and Articles of Association has saved more than US$ 100 in cost.
However, three other reforms remain in the pipeline, which will reduce the number of days by another 30 days after the implementation.
Time to register property has also been cut by almost half, from 425 days to 245 days through reforms at the Sub Registry Office. upto 45 days or 18.4 per cent of the current 245 days. Four more reforms are also expected to reduce the time involved in property registration by up to 45 days or 18.4 per cent of the current 245 days.
According to the 2008-09 National Budget, the tax rate for publicly listed companies has been reduced from 30 per cent to 27.5 per cent. Meanwhile, the tax rate for non-listed companies has been reduced from 40 per cent to 37.5 per cent.
The major reform that the report mentioned was automation of Chittagong Customs House (CCH), which reduced 42 steps from 48 steps for import and export clearance processes. It also reduced the cost of doing business by 40-50 per cent.