The National Council today unanimously ratified the convention on establishing the Multilateral Investment Guarantee Agency (MIGA) and the double tax avoidance agreement between Bhutan and India.
MIGA is one of the five agencies of the World Bank group. Bhutan was the member of only two agencies of the World Bank prior to joining MIGA. Being a member of two agencies Bhutan benefited through credits and grants by supporting various agencies and sectors. By being a member of the MIGA it would further help Bhutan bring in more foreign direct investment, lower borrowing cost, access to advisory services to the government, resolving disputes and access to environmental and social expertise among others. Bhutan is the 180th member of the MIGA.
Meanwhile, the double taxation avoidance agreement will facilitate cross border trade and investments by removing the prevailing incidences of double taxation.
The move is also to attract Indian investments in the field of educational institutions and health facilities. It is also aimed in addressing concerns of balance of payment deficits with India.
