Tax rebate for highlanders clarified by Finance Minister

In response to a question raised by the Member of Parliament of Bji Katsho, Lhendup Wangdi, regarding the tax rebate for highlanders, the Finance Minister, Lekey Dorji, clarified that citizens living in high-altitude areas are eligible for a tax rebate under the Property Tax Act of 2022.

Under the Property Tax Act of 2022, citizens living in higher altitude regions of the country are required to receive a tax rebate on the same amount as wetland.

Lyonpo further detailed that six villages in Haa currently qualify for the tax rebate as part of this initiative. He explained that the tax relief was designed to encourage people to remain in their homes, reducing rural-to-urban migration and promoting sustainable rural development.

Lyonpo Lekey Dorji explained that the tax benefit applies to certain gewogs across ten dzongkhags, including Bumthang, Gasa, Haa, Lhuentse, Paro, Thimphu, Trongsa, Trashigang, Trashiyangtse, and Wangdue Phodrang.

Under the Act, highlanders who reside in specific areas with a principal residence at higher altitudes are eligible for the tax rebate.

Lyonpo also stressed that the policy’s goal is not only to provide financial relief to rural communities, but also to strengthen national security by ensuring that people continue to live in areas near the country’s borders.

These high-altitude regions are often important for the country’s border protection efforts, which is why promoting settlement in these areas is seen as a priority.

This explanation provides further insight into the government’s strategy to support highland communities while ensuring that these areas remain vital for national defense.

The tax rebate for highland residents is part of a broader effort by the government to balance economic development with strengthening national security, particularly in border regions that face different challenges due to their remote locations

By encouraging people to stay in high-altitude areas, the government aims to prevent the decline of rural communities and ensure the continued presence of traditional lifestyles in these remote regions.