Most NC MPs support the GST commencement date on May 26, following legal debates over the National Assembly’s delay of Goods and Services Tax, Excise Tax, and Income Tax Bills. MPs for Tashigang and Zhemgang have suggested postponing discussions on the GST Bill due to tight timeframes and lack of research time. The NC’s Legislative Committee proposed amendments, repeals, and new sections, while MPs raised concerns about conflict of interest. MPs argue finance ministry’s tax collection could cause legal and constitutional issues, while Bumthang MPs support a review board outside the ministry’s purview.
According to Pema Tashi, the committee thinks the review board will improve public services, streamline operations, and increase administrative efficiency, especially when it comes to addressing tax disputes and consistency concerns involving other taxes like income tax and excise tax. The Legislative Committee was instructed by the House to examine Section 15 and suggest a start date; other sections will be discussed at a later time. The GST Bill was approved by the National Assembly on June 16 and imposes a 5 percent tax on taxable goods and services. Rice, cooking oil, salt, sanitary pads, and wheelchairs for people with impairments are among the items on the list of exclusions. Additionally, services including financial, health, and educational services—as well as the export of goods—are exempt. The first 100 units of free electricity in rural regions will continue to be excluded from the 5% electricity tax.