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

for Bhutan and therefore there is no doubt that most problems and difficulties
can be avoided.
The Ministers informed the Assembly that in line with the provisions on PIT,
anyone with annual income less than Nu. 100,000 would be exempted from this
tax. It is only one or two other countries that have this high a tax exemption
level. Although in the interest of self reliance all Bhutanese people must
contribute in accordance with individual capacity, Nu.100,000 has been set as
the tax exemption level and furthermore, as the PIT would be levied per
individual the total household taxable income can be shared amongst family
members including minors thereby reducing the taxable income. For instance,
in India and Nepal, annual incomes above Nu. 50,000 is taxable while in Bhutan
the level has been set at Nu. 100,000 and Bhutanese with annual incomes lower
than this level will not have to pay PIT. Therefore, no problems and difficulties
are foreseen with the introduction of personal income tax in Bhutan.
The Minister further explained that the PIT is liable to those with incomes from
salaries, real property, dividends from fixed business shares, cash crops,
intellectual property, interest from fixed bank deposits etc. Furthermore, in the
absence of such an Act, it is not possible to levy income tax on the few big
expatriate contractors working in the industrial sector in Bhutan. The Minister
pointed out to the Assembly that, therefore, it has become very important for the
National Assembly to endorse the Act. The Assembly then started the
deliberations on the 3 parts of the Act, with a brief explanation of every chapter.
The Paro Chimi said that while it is high time that the Act was endorsed and
implemented, it is also necessary that views and thoughts be expressed frankly
right from the beginning, as it will be difficult to amend the Act at a later date.
The Chimi expressed the opinion, with reference to 4.1 of Article 4 on page 47
that while the tax exemption level was set at Nu. 100,000, to benefit the people
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