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New tax reform adopted despite stern opposition

Jun 30, 2010

The National Assembly yesterday adopted the National Budget for the fiscal year 2010-2011, although the two opposition members made stern opposition against the revised taxation policies.

The Finance Minister, while presenting his report on the National Budget for the year 2010- 2011, informed the house on the revised taxation policies.

“Our expenditures are now reaching very high levels, which is not in line with our policy of achieving self-reliance. Therefore, it is extremely important for us to revise the tax in order to increase the revenue,” said the Finance Minister Lyonpo Wangdi Norbu.

However, the Opposition Leader, Tshering Tobgay, said increasing tax, without the approval from the parliament, is unconstitutional.

“I am against the adoption, as increasing the tax without the approval from the parliament is against the law. If this is the case of levying taxes and making decisions the Finance Minister should resign,” he said.

Defending the Finance Minister, the Minister of Agriculture and Forests, Lyonpo Dr. Pema Gyamtsho, said it is the government’s decision and not just the finance minister. “This was discussed in the Lhengye Zhungtshog and we agreed upon the tax revision. So it’s not the unilateral decision of the Finance Minister.”

On addition to this, the Economic Affairs Minister, Lyonpo Khandu Wangchuk, said this was not at all against the law. He added the tax was revised according to the law and as per the discussion in the Lhengye Zhungtshog. “….for the government to generate revenue the only means is through tax. We also worry when we increase the tax but we have to look for the future benefit. We can’t take decision just looking into the welfare of some individuals.”

Finally, the annual budget was adopted when the Bongo-Chapcha, MP Ugay Tshering, cleared the doubt saying that the revision was not against law. ”As ordered by the Speaker I cross-checked with all the officials in the Finance Ministry and found out that nothing went against law. It was all according to the constitution,” he confirmed.

1 Comment for “New tax reform adopted despite stern opposition”

  1. choki

    Grow up and be wise at this rate we are doomed.

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