The National Assembly unanimously adopted the Income Tax Bill of Bhutan 2025 today with all 45 members present voting in favour.

Before adoption, the Economic and Finance Committee presented its review report on Chapter 23 on taxable income from lotteries, betting, and gambling. The House endorsed the Committee’s recommendation to include a qualifier for "gambling," noting that the proposal was based on legal review, consultation, and research. The Committee also informed the House that related clauses were revised to align with the amended GST and Excise Tax Bills.

Regarding Schedule 1 (Tax Rates), the House endorsed the government’s proposal to retain the 22% tax rate for Bodies of persons (Section 2), Companies (Section 4), and Significant Economic Presence (Section 5). The House also endorsed the exemption threshold of Nu. 300,000 for interests on Fixed Deposits and Dividends. The  revision of Education Expense relief  for students where there is no clear documentary evidence of the incurrence of such expenses was raised from Nu.20,000 to Nu. 50,000 was also endorsed. Further, in the Schedule 6 (Disability Relief), the House endorsed the proposal to include “parents and siblings” to claim deduction in respect of the individual’s total gross adjusted income equal to Nu. 40,000. 

The Bill will  be transmitted to the National Council as per the Rules of Procedure.

Following the adoption of the Income Tax Bill, the Speaker highlighted the following key points:

1. The National Assembly adopted three major tax Bills: the Goods and Services Tax  Bill of Bhutan 2025, the Income Tax Bill of Bhutan 2025 and the Excise Tax Bill of Bhutan 2025.
   
   

2. The House endorsed the commencement dates as proposed by the government, considering the time and preparation required for its successful implementation of new tax laws. He stated that the government must closely monitor the risk of market speculation, hoarding, and price hikes, and ensure effective mitigation strategies are in place. The Department of Revenue and Customs has a critical role in implementing the new tax laws, and the government must extend full support and coordination.
   
   

3. The Economic and Finance Committee (EFC) is tasked with continuous monitoring and oversight to address any issues that may arise due to the new tax laws.