Search Results

You are looking at 1 - 2 of 2 items for :

  • "hydropower export sector" x
Clear All
International Monetary Fund. Asia and Pacific Dept

product lines has declined. The Theil index decomposes export diversification into an intensive margin (the degree of concentration in shares of active export lines) and an extensive margin (the emergence of new export lines) where lower values signify greater diversification. Cross-country evidence suggests that diversification is mostly driven by changes at the extensive margin, particularly for LICs with narrow trade structures 5 . While the experience up to 2005 would appear to conform to this pattern, the presence of a large hydropower export sector in Bhutan

International Monetary Fund. Asia and Pacific Dept
This Selected Issues paper describes the current tax system in Bhutan and suggests options for tax policy reform. Though significant hydropower revenues are expected in the medium term as major projects come on-stream, reforms to the existing tax system in the interim will generate fiscal room and prevent recourse to domestic debt to finance development needs. Key reforms include reducing tax exemptions in the near term and introduction of value-added tax in the medium term. The paper also analyzes the adequacy of international reserves in Bhutan using a customized risk-weighted metric. The results indicate that Bhutan’s reserve levels are ample.