The National Assembly adopted the Fiscal Incentives (Amendment) Bill of Bhutan 2020 as on 6th February 2020.
The bill was recommended to be put into force ‘retroactively’ by the Economic and Finance Committee from Income year 2019.
The House adopted the Amendment Bill with 40 Yes and 1 abstinence out of 41 members present and voting. No Major amendments were made in the bill, as further examination is being carried out for the later sessions of the Fiscal Incentives (Amendment) bill.
The amendment for the expiry date of Income Tax Exemption to small and micro businesses in rural areas was taken to 31st December 2024.
The house discussed on issue regarding the need for realignment of the expiry date of article 5 as the current date was said to contrast with the proposed amendment.
The FM in response stated that only article 5 date was an issue, and that others were in sync with the plans. Therefore, the ministry proposed for an extension of the expiry date towards the end of 2023.
FM addressed the house that major amendments will be necessary and that the deliberations will be done in the upcoming sessions.
Panbang MP, Dorji Wangdi raised a question regarding the expiration of the income tax exemption which is due to expire by 2020, adding to which he also stated that 9 articles in the bill dates to expiration by 2020.
Following which he suggested the government to consider in line with the introduction of the GST bill.
The FM said that, changes have to be need-based in the Act while also adding a statistical report of Nu 4.2 Bn loss which the government had reportedly incurred due to the exemption of income tax.