The Department of Revenue and Customs (DRC) is in the preparatory process of implementing the Personal Income Tax (PIT) passed by the 79th National Assembly on July 29.Having no fixed criteria for the implementation of PIT, at the moment, the DRC within the next three months will come up with a final draft that will have the rules and procedures of PIT.
The draft will be a result of internal workshops and seminars and feedback from the regional revenue and customs office and from the public.
According to a spokesperson from the DRC, public awareness would encourage voluntary compliance and let the taxpayers know what their obligations are. They would be briefed on the functions of the DRC regarding PIT and what kind of authorities the DRC will have on levying the PIT.
The awareness campaign would help protect the taxpayers and have a general idea of what percentage of their income are liable for PIT, which will be made easy with the DRC working on a software programme called a Calculation Model that will calculate the exact amount of money a taxpayer had to pay. The DRC plans to make this software accessible to everyone.
According to the finance minister, Lyonpo Yeshey Zimba, with the introduction of PIT, Bhutans revenue potential would immediately increase by about Nu 80 to Nu 100 million a year. Adding that the tax exemption level of Nu 100,000 was the highest in South Asia and also one of the highest in the world.