The Bhutanese Leading the way.
The Ministry of Finance (MoF) said on 5 October 2023 that all relevant authorities are to collect property tax for 2023 from 1 January 2024 to 31 March 2024. The initial deadline of 31 December 2023 has been extended.
According to MoF, the delay is the result of the special circumstances surrounding the implementation of the property tax as well as the continuous work to prepare the system. MoF further stated that the delay is a short-term solution meant to account for the complexities involved in the first-ever property tax rollout.
As for the unique circumstance that led to the extension, PM said that the Property Tax Act of Bhutan 2022, in particular, Section 28 states that all taxes under the Act are due and payable within 31 December of each year, even if an objection or appeal has been made under Chapter 6 of the Act.
Nevertheless, PM stated that all taxes are collected in the months of January and March, and acknowledged that the government was mistaken about the probation.
PM asked, “How can they collect property tax before the year ends?” People were worried because although though December was just one month, the year had not ended. It was requested that all taxes be collected in February, regardless of the method used.
PM agreed that it was only procedurally correct. And more clarity on the extension on the property tax was made. “You will pay all this year’s taxes in 2024, and the 2024 tax in 2025, as follows,” PM added.
Although the property tax should be ideally paid by 31 December, but now that you can pay all your taxes together, there is no fixed date to pay your property tax only, said the PM.
Software updates have been made to the system, and in the absence of value-based systems, the government incorporated PAVA system from the zoning system into the chiwog system.
“I want to entrust Chiwog Tshogpas. The grade of your land will be provided to you by the Chiwog Tshogpas. We will make sure to hold them accountable if something goes wrong,” PM said, and further added, “The National Land Commission currently uses a zoning system; certain properties are worth more in actual terms than they are based on grade, and vice versa. To rectify that, we are putting in work on the ground.”
As a result of the notification circulated by Ministry of Finance, Thimphu Thromde issued a notification stating that TTpay and the website will be unavailable for tax payment. However, all outstanding tax dues for 2022 and before should be cleared at the Thromde Revenue Counter.
