The Bhutanese Leading the way.
The Finance Minister Lyonpo Lekey Dorji in response to a question in the monthly meet-the-press on revising the Personal Income Tax Slab said the Ministry of Finance acknowledges that the personal income tax exemption limit was last revised in 2020 and that subsequent salary revisions in 2023 have resulted in more employees entering the taxable income bracket.
In 2020 the PIT exemption slab had been raised from Nu 200,000 to Nu 300,000 meaning any income till Nu 300,000 would not be taxed.
He said that recognizing the concerns regarding potential increases in tax burdens, the Ministry is currently reviewing the exemption threshold as part of a broader assessment of the taxation system.
Any potential revision will take into account multiple factors, including the need to ensure a fair and equitable tax system; maintain tax compliance; and broaden the tax base while minimizing the burden on salaried individuals, particularly middle-income and low-income earners.
He said the Ministry remains committed to a balanced approach that supports economic growth, fiscal sustainability, and social equity.
Therefore, any proposed changes will be assessed for their fiscal implications and overall impact on taxpayers.
As per the established protocol for such matters, the public will be informed in due course regarding any revisions or policy decisions arising from this review.
Lyonpo said that since the matter is a money bill he cannot give additional details.
