1 TRANSLATION OF THE PROCEEDINGS AND ... - APFA News

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country donor countries cannot continue to extend assistance and therefore it is important to increase the revenue generation within the country. The Minister pointed out that with regard to revenue generated domestically, the total rural tax including taxes on house, livestock, land etc. comes to a total of just over Nu. 8 million, which is not even 1% of the total income tax collected. Similarly, total business income tax amounts to Nu. 201 million, which is about 4% of the total income tax. Looking at the situation in other countries, business income tax should be about 40 to 50% of the total income tax. In addition, besides the direct taxes, other taxes such as sales tax and custom duties etc. can be levied but till now the government has not levied most of these taxes and those levied are also at a minimal note. Therefore, sales tax and custom duties only come up to Nu. 963 million, which is about 21% of the total taxes. As the revenue collected from the people and businesses in Bhutan is a very small proportion of the total revenue, the national revenue is mainly dependent on the Chukha Hydro Power Project, which contributes more than 40% to the total revenue. The Minister pointed out that about 70% of the domestic revenue is generated by the government and it should be borne in mind that only 30% of the revenue is generated by the people. The Minister said that in other countries taxes make up the entire public revenue. In Bhutan, if income tax on the people is not raised even a little there is great risk that it would result in a situation of the people being perpetually dependent on the government and the government on donor countries. It is His Majesty the King’s desire that the income of the people be equitable. In this regard, PIT is an effective strategy that could make the fortunes of the people more equitable. Therefore, if a good personal income tax system is not put in place, the gap between the rich and poor would become very wide. To bring the people to a more equitable level of wealth and fortune, the personal income tax is most important because the PIT would require those with high incomes to pay 216
high taxes, and those with low income would pay lower amounts and those with no incomes would not have to pay any taxes. Thus it would greatly benefit in the equitable distribution of wealth. The Minister reminded the members that therefore, it must be kept in mind that such a system being introduced by the government is nothing shocking. As proposed by the Punakha Chimi the Assembly resolved that article 1(e) on page 2 would be made 1(f) and 1(e) would specify “the Ministry of Finance would include a report on income tax in its Budget Report Presentation to the National Assembly every year”. The Finance Minister said that as may be known to all the members, His Majesty the King has repeatedly commanded that taxation on the Bhutanese people should be in accordance with the law. Therefore, till now the Royal Family, Ministers and all the Bhutanese people, irrespective of wealth or social status, have been paying taxes as per the law, be it in business or commerce or any other activity. Hereafter, too, PIT would be liable without exception on all taxable incomes be they Ministers, Royal Family or anyone else. Further, the authority to decide upon the sales and business tax as well as its rates would be with the National Assembly and not the Ministry of Finance and as submitted by the people, henceforth the Ministry of Finance would present a report with regard to taxes in the National Assembly every year. The Minister pointed out that once the personal income tax is endorsed by the National Assembly it would be liable on all Bhutanese people with taxable incomes. Other countries, when they introduced the personal income tax in the past did not have any experience or example to learn from and later had to face many related problems and difficulties. Whereas, Bhutan, starting at the right time has the opportunity to review, observe and learn from many experiences around and the world and formulate the most appropriate and relevant system 217
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I. Inaugural Ceremony TRANSLATION O
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The National Assembly ratified seve
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allot. A brief curriculum vitae of
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Sonam Wangchuk from Zhemgang won th
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Bodo militants in the country pose
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Goendeys in the country continue to
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1. The military capability of the a
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ate is 4.5%, and the balance of pay
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of the Basochhu Hydropower Project
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3. The Department of Education has
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As Gross National Happiness places
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Since people-centred development li
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Recognizing the deep reverence that
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conference. This is an indication o
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safeguard the sovereignty of the co
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They also expressed their profound
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ooklet on the financial report of Y
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Nu.260 million was spent on purchas
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Nu.381 million increase in the budg
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would be incurred. Although the cur
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udget presentation by the Hon’ble
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The fact that the debt service rati
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the territories of Assam and Bengal
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Since many of the plan projects cou
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issue of the Thimphu-Phuntsholing h
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the Department should ensure that t
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Sarpang Dzongkhag. He extended the
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The Speaker underlined the signific
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Kuensel and the Bhutan Broadcasting
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The Hon’ble Minister for Health a
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A Royal Advisory Councillor and the
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The Speaker noted that the governme
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failed to resolve the problem, ther
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serious resentment and animosity be
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The NDFB militants are fighting the
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affected the security of the countr
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The ULFA delegation said that they
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again to find a solution to the pro
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led by the Home Minister and the UL
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epresent a government since they ar
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Bhutanese people. Last December, wi
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ii. Two rounds of Security Coordina
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undergone militia training and serv
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left but to resort to military acti
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shops. In such situations, the loca
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would be better to act in accordanc
Page 93 and 94:
He informed the members that, under
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and working to this end without eve
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security of the nation is of the ut
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however, be in our interest to endo
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agreement signed with the Royal Gov
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there was no longer any conscriptio
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genuine volunteers should be forwar
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the time to make excuses regarding
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militia force, and after returning
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The people’s representatives of T
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They wondered where all the organiz
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faction which does not have camps i
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pressing on this issue, the problem
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informed the house the Lhengyel Zhu
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apprehended and brought to justice.
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The Foreign Minister informed the h
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this regard, the Royal Government w
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who left after committing terrorist
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and the agreement reached by Bhutan
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2. The hon’ble members are aware
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verification provides ample time an
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In his presentation on the issue, t
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deliberately trying to delay the pa
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obbery and destruction of service i
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emain in the country. These people
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The people in the camps in Nepal co
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during the 14 th round, Bhutan had
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abide by the resolutions of the Nat
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However, it is most important that
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effective treatment or vaccine, and
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The Secretary also pointed out that
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supervision and guidance. The Assem
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local Forest Office. This takes abo
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4. To enhance sustainable use of fo
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For conifer species, Nu.40 per tree
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per truckload. Further, in order to
Page 165 and 166: A Royal Advisory Councillor said th
Page 167 and 168: workforce were reduced, the Bhutane
Page 169 and 170: issue. Furthermore, the Cabinet has
Page 171 and 172: numbering about 60,000 and coming t
Page 173 and 174: proposing the issue of the expatria
Page 175 and 176: Penden Cement Plants are Bhutanese.
Page 177 and 178: the government offices take the nat
Page 179 and 180: Punakha Chimi those people on whom
Page 181 and 182: the competence of the Bhutanese in
Page 183 and 184: are private sector candidates who r
Page 185 and 186: aspects and those who are unable to
Page 187 and 188: Jabmi. It would be beneficial if th
Page 189 and 190: fees for Jabmis would not be approp
Page 191 and 192: their decisions should be given due
Page 193 and 194: material inducements to innocent vi
Page 195 and 196: Another Chimi from Samtse Dzongkhag
Page 197 and 198: It is the responsibility of the Gup
Page 199 and 200: The Dorji Lopen of the Central Monk
Page 201 and 202: The Minister expressed appreciation
Page 203 and 204: Zhungtshog to direct the Government
Page 205 and 206: The Minister pointed out that Part
Page 207 and 208: Among many other provisions, the ac
Page 209 and 210: flourishes. A strong and clear Chat
Page 211 and 212: The Minister informed the Assembly
Page 213 and 214: In Article 12 of Chapter 4 on page
Page 215: Therefore, it is being submitted to
Page 219 and 220: and in the interest of the poor, it
Page 221 and 222: Therefore, it is important that PIT
Page 223 and 224: session. Moreover, a revised copy o
Page 225 and 226: The rule of law is a basic requirem
Page 227 and 228: country depend upon the presence of
Page 229 and 230: The National Assembly has the full
Page 231 and 232: The Punakha Chimi also commented on
Page 233 and 234: A lot of good experience has been g
Page 235 and 236: meat in the country should decrease
Page 237 and 238: therefore face lots of difficulties
Page 239 and 240: If two or three Chathrims rather th
Page 241 and 242: XX. Expression of Appreciation and
Page 243 and 244: tourists and other non-governmental
Page 245 and 246: people of different geogs to identi
Page 247 and 248: gained by the members of the DYT an
Page 249 and 250: of the Kurichu Hydro Power Project.
Page 251 and 252: institutes besides centers of Buddh
Page 253 and 254: that it has become a majestic icon
Page 255 and 256: promotion of the national language.
Page 257 and 258: those belonging to neighbouring Dzo
Page 259 and 260: secondly due to the concerted effor
Page 261 and 262: of a child, the Hon’ble chairman
Page 263 and 264: order to avoid problems related to
Page 265 and 266: Of the five killed, four were fores
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and sorrow at the incident. He said
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Among the dead in the recent incide
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greatly undermine the friendship an
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confidence and appreciation of the
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teachings of the Buddha to flourish
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opportunities and challenges associ
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3. Grants a. GoI Program Grants 800
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While there was a substantial incre
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would continue to monitor the size
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The Royal Government will, as annou
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power tariff for the rural consumer
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The domestic revenue forecast for t
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Customs duties on yarn have been ab
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The Royal Government continues to a
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The Royal Government is, therefore,
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The Ministry of Finance will study
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climate for private sector developm
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4. Gross International Millions of
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