Restrictions result in reduced indirect tax collection

Restrictions result in reduced indirect tax collection-

The freeze on construction loans and ban on import of cars, besides other restrictive fiscal and monetary measures, did not only suppress economic growth, but also affected government’s revenue collection.

CRR revised to 10%

RMA-Cash Reserve Ratio

In light of excess liquidity in the financial system, the Royal Monetary Authority (RMA) had issued a notification to revise the Cash Reserve Ratio (CRR) of financial institutions from the existing 5 percent to 10 percent.

BOiC expands to east

BOiC_East

The Business Opportunity and Information Centre (BoiC) has approved 149 projects of 500 applicants from the six Eastern Districts. The applications were approved after BOiC’s regional office in Trashigang opened yesterday.

People buying more cars despite tax revision

People buying more cars despite tax revision--

An increasing number of people are buying new cars despite tax revision on vehicles. Between July and December, last year, Road Safety and Transport Authority registered over 2,572 new vehicles.

Revised FDI allows foreign investors to take profits in convertible currencies

FDI-LyonpoNorbuWangchuk

The revised Foreign Direct Investment (FDI) policy will now allow foreign investors to take dividends or profits in convertible currencies. Earlier policy restricted conversion of profits resulting the country’s first-ever FDI company, G4S, to pull out.

There is no excess liquidity: government

ExcessLiquidity

While local banks, economists and the opposition believe there is excess money lying idle in the financial system, the government thinks otherwise.

Inflation continues to drop

InflationDrops

Bhutan’s consumer inflation continued to drop, reaching an all time low of 6.3 percent in December, last year. In November, inflation recorded was 6.6 percent.

Non-Performing loan at Nu 7.6B

non-performing loan INCREASED-..

The total amount of non-performing loans or bad loans in the commercial banks has increased from Nu 3B in 2010 to Nu 7.6B last year. In other words 12 percent of total credit dished out by the financial sector has defaulted.

Inflation drops to its lowest in 2014

Inflation

Bhutan’s consumer inflation fell to 6.6 percent in November last year, the lowest recorded so far in 2014. The decrease in the rate of inflation was driven mainly by a reduction in the price of fossil fuel.

Decreased global fuel price impact on Bhutanese economy

Decreased global fuel price impact on Bhutanese economy-

The decrease in global fuel prices is pushing down the prices of goods and services in the local economy too. However, the decrease is not being felt, as much as, it is in the international market.

BBSC 2014