NC MPs question the legality of the Goods and Services Tax Bill 2025, which includes exemptions for certain goods and services, including rice, cooking oil, salt, and wheelchairs. The proposed GST amendment aims to realign the tax framework, remove EET from the GST Act, and introduce a separate Excise Tax Act for excisable goods. The section stipulates that any tax imposed or increased by Parliament, or abolished, reduced, or remitted, will be applied retroactively from its initial National Assembly presentation. Pema Tashi argued the Bill should be effective immediately, while Tashi Chhozom questioned its constitutionality, questioning if it contradicts Article 13 (5) of the Constitution.
Article 13 (5) mandates that a Bill passed by one House must be presented to the other within 30 days, and for budget and urgent bills, in the same session. Mongar MP Tshering Wangchen questions if Section 46E of the Public Finance Act contradicts Article 13 (5) of the Constitution, stating no immediate need for the Bill’s implementation. Bhutan’s Finance Minister, Lyonpo, suggests a six-month preparation period for the Bhutan Integrated Taxation System, allowing for user acceptance training and promoting awareness among businesses, while acknowledging the risk of hoarding items. MP for Paro Ugyen Tshering questions maize’s GST exemptions due to its staple diet status and potential increase in free electricity units for rural households.