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

and in the interest of the poor, it would be appreciated if this level could be set
at Nu. 200,000.
In response, the Finance Minister said that the tax exemption level set at Nu.
100,000 is itself a very high exemption level and if this level is further raised to
Nu. 200,000 most of the people would not be in the taxable income group. The
PIT is not a burden that is beyond the capacity of the people and the main
purpose of the PIT is for the citizens to contribute in line with one’s own
individual capacity, towards the country’s socio-economic development,
provision of services and in ensuring national security.
The Minister pointed out that the people in the Dzongkhag meetings and the
National Assembly sessions express their whole hearted support to the nation in
its time of need and express their willingness to extend material and physical
support and even stand ready to sacrifice their lives, if necessary. This continues
to be a source of pride and inspiration to His Majesty the King and the Royal
Government. If today the people contribute in the form of PIT whatever little
they can afford, there is nothing more that needs to be given to the country.
The Minister informed the Assembly that to date, civil servants in grades higher
than 14 with incomes of Nu. 50,000 per annum pay taxes. With the PIT,
incomes below Nu. 100,000 is exempted from tax and so only civil servants in
grade 7 and above would be required to pay the PIT. If the tax exemption level
is increased to Nu. 200,000, the civil servants as well as most of the business
people would be exempted from tax.
Furthermore, besides the tax exemption level being set at Nu. 100,000 the
Minister again pointed out that the PIT is individual and taxable income can be
divided amongst the family members, which will mean that most family
incomes will be tax-exempted and as it is, it would be difficult to have people in
the taxable income group even in the next 8 to 9 years.
219