The Maldives has slipped 16 places in the World Bank’s Ease of Doing Business report for 2013, ranking 95th out of 185 economies measured.
Much of the drop is due to the introduction of a new taxation system, which previously saw the Maldives at the top of the index. Taking into account the business profit taxes, pension payments and others, the report calculates the Maldives’ total tax on gross commercial profits for a business in its second year of operation profit as 30.7 percent, well below the South Asia average of 40.2 percent.
The Maldives is rated 167th – worse than Afghanistan – for ‘getting credit’, a measure of the availability of credit information and the effectiveness of collateral and bankruptcy laws in facilitating lending.
While the rating is particularly hurt by the lack of a credit ratings registry, the Maldives scores several points lower than the regional average for protecting the rights of creditors.
The Maldives ranks higher than the regional average for resolving insolvencies, with an asset recovery rate of 50 percent (compared to the regional average of 33 percent) in half the time (1.5 years).