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Telecommunication tax waive off to be part of tax reform package

January 4, 2019
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Doing away with the telecommunication tax is one of the campaign pledges of the Druk Nyamrup Tshogpa (DNT). The finance minister says the tax waive off is likely to come as  a part of a major tax reform package being planned.

The cabinet is reviewing the planned tax reforms, Lyonpo Namgay Tshering said on Wednesday.

“Since we are coming up with major reforms in taxation, the finance ministry is looking into broadening the tax base. In doing so, we are also looking into introducing GST in Bhutan,” Lyonpo said.

“All these tax reforms, including waiving off of income tax for people earning under Nu 300,000 per year, will come in one package.”

The minister added they are also looking for ways to make up for the revenue loss that the government would incur if the reforms are implemented.

“If we are to do away with the five percent voucher tax, the government would incur a revenue loss of around Nu 200 M. So, we are also looking into how best we can make up for the loss of revenue if we are to implement that.”

This tax reform is expected to be deliberated in the summer session of the parliament.

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