Regional Revenue and Customs officials of Gelegphu are advocating the people of Drukjeygang Gewog in Dagana, to pay personal income tax on the income earned from the sale of cash crops.
Any cash crops fetching more than Nu 200,000 are liable to pay tax.
The Assistant Collector of Regional Revenue and Customs office in Gelegphu, Sherab Jamtsho, said as per the Income Tax Act 2001, income earned from sale of orange, cardamom and apple are liable for Personal Income Tax.
But he said most of the people are not aware of the rule.
“This kind of levying tax is not new. It has been there since 2001. Most of the people are not aware of it. So we came here to advocate them.”
For Palden Wangchuk, 78, a resident of Drukjeygang Gewog, it is something new. He was not aware that such law existed.
But after meeting with the officials, he intends to share the knowledge with his children and grand children back at home.
“If the income is up to two hundred thousand ngultrum, we are exempted from paying any tax. Even if we exceed three hundred thousand ngultrum, we get 30 percent deduction. For example, if I sold three hundred thousand worth of commodities and after 30 percent deduction, if my profit is still two hundred thousand, then I need not pay any tax. That’s what I understood.”
Like him, other villagers welcomed the idea of paying Personal Income Tax. Most of the villagers said their income never exceeded Nu 200,000 after selling any cash crops.
“We should pay the tax if we can. It will benefit the government. If we get Nu 1 M profit and spend one million in the process of producing the commodity, we need not pay the tax. But we must produce documents,” shared a villager, Sherab Dorji.
Personal income tax is a tax levied on personal income of an individual. Employment income, Rental income, Dividend income, Income from sale of Cash crop, and income from other sources constitute the Personal income.
In the meantime, people are encouraged to declare the quantity of their cash crops or the income earned annually, in order to prevent from unnecessary problem.
