Bhutan’s National Revenue Records 24 Percent Growth

Email

According to the provisional revenue report 2017-18, tax revenue increased to Nu 27.10B, an increase of 25 percent from 2016-17.

Traditional Crafts of Bhutan. (Source: Aspkom)

 

By Tshering Dorji | Kuensel

The fiscal year 2017-18 saw significant growth in Bhutan’s national revenue amounting to Nu 36.87B, recording a growth of 24 percent compared to the fiscal year 2016-17.

According to the provisional revenue report 2017-18, tax revenue increased to Nu 27.10B, an increase of 25 percent from 2016-17.

This is attributed to increased royalties from hydropower, excise duty refund and higher collection from CIT, PIT, customs duty and sales tax.

A breakdown of tax revenue into different sources

Non-tax revenue, which are mainly dividends, royalties and administrative fee, constituted Nu 9.76B, an increase of 22 percent. This is mainly on account of revaluation reserve fund and surplus transfers from the RMA.

Tax revenue contributed 73.5 percent to the total revenue while non-tax revenue contributed 26.5 percent.

The corporate income tax collected in the fiscal year also rose to Nu 9,03B from Nu 8.17B in 2016-17. Business income tax increased to Nu 1.49B from Nu 1.27B.  

Personal income tax also increased to Nu 1.34B from Nu 957M in the same period. This could be attributed to enhanced tax administration with the launch of RAMIS.

Sales tax contributed more than Nu 4.2B, which is also an increase of more than Nu 400M compared with 2016-17. The excise duty increased by almost Nu 1.3B, while green tax also recorded a growth of Nu 29M.

 

Dagachhu Hydropower Plant in Southwestern Bhutan

Source: Asian Development Bank (ADB)

 

Meanwhile, municipal land tax collection more than doubled from Nu 2.9M to Nu 6.05M.Royalties increased from Nu 1.9B in 2016-17 to Nu 3.8B in 2017-18.  This is because the royalties from hydropower plants increased substantially from Nu 142M to Nu 1.99B.

Earnings from non-tax revenue

In terms of non-tax revenue, Druk Holding and Investments (DHI) repatriated a dividend of more than Nu 4B, constituting almost 98.9 percent of the total revenue from dividends.

The surplus transfer from the Royal Monetary Authority also recorded more than Nu 1B compared with Nu 874M in 2016-17.

Administrative fee from the health services amounts to Nu 33.6M while immigration services contributed Nu 226M to the national revenue.  

Sale of tender documents recorded a decline from Nu 2M to Nu 1.3M in a span of two fiscal years. Audit recoveries doubled from Nu 10.2M to Nu 23.2M.

 

This article first appeared in kuensel and has been edited for the Daily Bhutan.

 


Related Posts

Asian Development Bank: Bhutan Among Fastest Growing Economies In...

In 2018, Bhutan’s GDP is projected to grow by 7.1 percent, the second highest growth after India (7.3 percent).

Jul 10, 2018 18:48

According To The World Bank, Bhutan Ranked 81st In Ease Of Doing...

The rankings were determined by sorting the aggregate scores on 10 parameters, each consisting of several indicators.

Nov 05, 2018 15:45

​Bhutan is the 3rd Fastest Growing Economy in 2017

Lyonchhen said that if one went by The Economist ‘World in numbers’ figures, then Bhutan is predicted to be the fastest...

Jan 03, 2018 11:36

Start-up Centre In Bhutan Held Session To Provide Advice On Doing...

Guidance was provided during the first session on starting a business held at the newly established start-up centre at...

Aug 14, 2018 12:06

Bhutan’s DHI Business Acceleration Programme Partners With the...

The press release states that DHI has hired the services of IC2 Institute under the University of Texas, USA as a...

Oct 16, 2018 17:08

Bhutan’s First Entrepreneurship Festival Held In Thimphu To...

A book entitled “Entrepreneur Stories” was also launched at the opening of the festival. The stories are expected to...

Oct 29, 2018 15:48

Latest

News

Their Majesties, Prime Minister Dr. Lotay Tshering And Other Dignitaries Of Bhutan Offered Prayers For Sri Lanka

His Majesty also sent a message of condolence to the President of Sri Lanka, Maithripala Sirisena, expressing the solidarity of the people...

Apr 24, 2019 20:08

WFP Shifts Focus To Capacity Development In Nutrition And Disaster Preparedness In Bhutan

The decision was made after consultations with Bhutan's government, in line with the UN Sustainable Development Goals

Apr 19, 2019 13:02

Features

How Bhutan Changed My Life: Tamiki Nakashima

Tamiki Nakashima, who is from Japan, speaks about how life is like for him while living in Bhutan.

Apr 25, 2019 11:11

Addressing Some Challenges As Bhutan Prepares For Rise In Tourist Arrivals

The gross receipt from tourism is expected to increase from Nu 10.6 billion in 2018 to about Nu 39.16 billion in the next five years.

Apr 23, 2019 17:40

Sports

Bhutan To Hold First 'Sports And Culture Festival' For Runners And Cyclists

There are two tiers to the event, comprising of a full-race distance of 50km and a half-race of 25km.

Mar 06, 2019 17:14

Bhutan’s HRH Princess Eeuphelma Choden Wangchuck Attended The General Assembly of the Asian Paralympic Committee In Dubai

The General Assembly is the highest decision making body of the Asian Paralympic Movement.

Feb 08, 2019 18:15

Business

Celebrating Bhutan's Entrepreneurs: Kinley Dema Of BuBu Bakery, Lobesa

This story is part of an exclusive feature by Yeewong Magazine in Dec 2018 on celebrating entrepreneurship in Bhutan.

Apr 20, 2019 19:18

Celebrating Bhutan's Entrepreneurs: Sonam Choden of Rolling Pin Bakery in Thimphu

This story is part of an exclusive feature by Yeewong Magazine in Dec 2018 on celebrating entrepreneurship in Bhutan.

Apr 11, 2019 11:08

Travel

Can Bhutan Take Its Happiness Brand To The Next Level?

Two key challenges: galvanising citizens as brand ambassadors and applying brand recognition to growth sectors.

Apr 21, 2019 10:40

The Magical Waters Of Gasa Tsachu – A Popular Hot Spring In Bhutan

While most people visit the hot spring in the hope that it could cure them of various ailments, it has become an annual visit for many to...

Mar 25, 2019 14:38

Lifestyle

Food Review: Cloud9 Cafe & Bar

Cloud9 has always been known in Thimphu for dishing out handcrafted gourmet burgers.

Mar 09, 2019 09:44

Tshering Zangmo Represents Bhutan At The 5th Young Chef Olympiad In India

Tshering Zangmo has successfully made it to round two of the Olympiad.

Feb 04, 2019 16:35

Subscribe to our newsletter

Never miss out on new happenings and news stories!