Bhutan: Selected Issues

July 1, 2014

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Bhutan: Selected Issues, (USA: International Monetary Fund, 2014) accessed September 18, 2024

Summary

This Selected Issues paper describes the current tax system in Bhutan and suggests options for tax policy reform. Though significant hydropower revenues are expected in the medium term as major projects come on-stream, reforms to the existing tax system in the interim will generate fiscal room and prevent recourse to domestic debt to finance development needs. Key reforms include reducing tax exemptions in the near term and introduction of value-added tax in the medium term. The paper also analyzes the adequacy of international reserves in Bhutan using a customized risk-weighted metric. The results indicate that Bhutan’s reserve levels are ample.

Subject: Consumption taxes, Debt service, Exports, External debt, Income and capital gains taxes, International trade, Revenue administration, Taxes

Keywords: Asia and Pacific, Bhutan, Consumption taxes, CR, Debt service, Export, Export base, Export basket, Exports, Generation capacity, Income and capital gains taxes, Indirect tax, ISCR, Overdraft facilities, Revenue collection, Rupee, Rupee reserve share, South Asia, Taxation, World export

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2014/179
Stock No:

1BTNEA2014002
ISBN:

9781498342254
ISSN:

1934-7685

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