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Policy vs. Reality – disability incentives remain unimplemented

April 3, 2025
in Other Stories, Social
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Bhutan’s progressive policies on papers often fail at implementation. A striking example is the National Policy for Persons with Disabilities 2019. Persons with disabilities know this reality firsthand. In this news report, a young woman with disability, running a tailoring business, expresses fear of not being able to sustain her business after recent reports shed light on sudden increase in Business Income Tax. This is an issue she need not worry about if the provisions on tax incentives for businesses owned by PWDs is implemented.

In Babesa, 25-year-old Leki Lhadon, who has cerebral palsy, runs a tailoring shop, a venture she established in 2023.

She has also employed four people, three of whom are persons with disabilities.

Her journey, marked by grit and a passion for independence, represents the hope of many in the country living with disabilities.

Leki acknowledges the erstwhile labor ministry that supported her and her friends start this business.

“In order to get work, we need qualification which I do not have. Offices need someone who is literate and can write which I can’t. But that said, I used to work but they always blame us and discriminate us due to our disability.”

Starting a business means she has to take financial decisions. This includes paying taxes, rents and salary for her employees.

Last year, Leki paid Nu 1500 as Business Income Tax, a sum she says was manageable. She currently pays 10500 ngultrum as rent for her store and help the other four people earn their livelihood.

Passang Dema, Employee, Puenzhi Tailoring said “We are not as literate as others to find another job and because we are disabled in the same group, people talk about us. But in a setting like this, we share our problems openly because we connect with each other through our disability”

Recent reports highlighting that tax burden on small and medium-sized enterprises has suddenly increased left Leki worried about increasing taxes in the coming years.

She has yet to file her BIT for 2024 income year.

Bhutan has a provision designed to encourage people like Leki to become part of the broader economy.

The National Policy for Persons with Disabilities 2019 has provision according to which the government shall provide appropriate incentives for businesses owned and run by persons with disabilities.

This could include appropriate tax incentives, or providing space to persons with disabilities in government or public facilities.

However, Leki was never given a tax incentive nor a space. The Department of Revenue and Customs does not implement this provision in the current income tax act. The policy, on the other hand, is six years old.

“Paying tax is important. Not paying tax is also not okay. It is difficult to run the business like a normal person. I think it will benefit us if they waive 30 to 50 per cent of the tax”

The Social and Welfare Committee of the National Council submitted a review report on the state of persons with disabilities last year. The house adopted the report with resolution and recommendations. But tax incentives for persons with disabilities still remain in a limbo.

Samten Dolkar

Edited by Phub Gyem 

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