The implementation of the goods and services tax or GST has been further delayed. The National Assembly today withdrew the GST Amendment Bill from the current session of Parliament. The finance minister cited ongoing challenges with the Bhutan Integrated Taxation System and the government’s focus on prioritising economic recovery from the COVID-19 pandemic as reasons for the withdrawal.
The goods and services tax was proposed as a reform to modernise and simplify Bhutan’s tax system.
It aims to enhance growth and efficiency across the manufacturing, trading, and service sectors.
Initially scheduled for implementation in July 2022, GST has faced repeated delays.
“Due to the pandemic that began around 2020, the global economy, including Bhutan’s, faced significant challenges. As a result, the government had to prioritise economic recovery, which is another reason why the amendment of the Bill cannot proceed,” said Lekey Dorji, Finance Minister.
In August this year, the Department of Revenue and Customs signed an agreement with Data Torque Limited, a New Zealand-based firm, to support the development of the Bhutan Integrated Taxation System.
“I believe it is crucial to have the necessary tools in place to implement GST effectively. Therefore, I fully support the finance minister’s decision to withdraw the Bill from this parliamentary session,” said Sonam Tashi, MP, Lamgong-Wangchang, Paro.
All the members present in the House supported the motion to withdraw the GST Amendment Bill.
Karma Samten Wangda
Edited by Sherub Dorji
