Bhutan : Selected Issues

Author/Editor:

International Monetary Fund. Asia and Pacific Dept

Publication Date:

July 1, 2014

Electronic Access:

Free Full Text (PDF file size is 697 KB).Use the free Adobe Acrobat Reader to view this PDF file

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.

Series:

Country Report No. 14/179

Subject:

English

Publication Date:

July 1, 2014

ISBN/ISSN:

9781498342254/1934-7685

Stock No:

1BTNEA2014002

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

29

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