THIMPHU, BHUTAN (Xinhua) — In what could be the biggest reform in indirect taxation system of Bhutan is aiming to implement “goods and services tax” (GST). Very recently, the International Monetary Fund (IMF) has shown willingness to support the country’s effort to implement the GST.
The GST, if implemented will replace the current sales tax, customs duty tax and excise duty tax of Bhutan.
Bhutan’s decision to implement GST came following the implementation of the GST system in India in July 2017. Across the globe, more than 160 countries have the GST system.
IMF’s deputy managing director Tao Zhang visited Bhutan from March 16 to March 20. During the tour, He discussed with Bhutan leaders on IMF’s help in building capacity for a smooth transition of taxation system from conventional one to a GST regime.
