10/07/2026
My Opinion on GST Registration in Bhutan
The Goods and Services Tax (GST) is an excellent taxation system, and it is high time for its introduction in Bhutan. The government deserves immense appreciation for taking this bold and progressive step to implement it. This reform will modernize our economy, build transparency, and raise the revenue needed for our country's development. However, to unlock its full potential, we should refine how the system is structured.
First, the government can improve the process by linking GST registration directly with trade licenses. When a business receives a trade license, it should automatically receive its GST registration. This seamless link would simplify the process and avoid confusion for business owners from day one.
Second, there should be no GST threshold. A threshold creates a massive loophole that damages the economy and creates an unfair playing field. When small businesses are exempt from GST, they can price their goods lower than registered businesses, stealing customers away from law-abiding companies that pay their fair share. Furthermore, a threshold encourages "tax fragmentation," where a large business intentionally splits itself into multiple tiny, fake entities just to stay under the limit and avoid paying taxes. By removing the threshold entirely, the government creates a perfectly level playing field where every business competes on equal terms, the tax base is maximized, and tax cheating is stopped before it can even start. Including all businesses ensures that everyone contributes fairly.
At the same time, small businesses may find GST compliance difficult. Instead of giving threshold exemptions, the government should focus on making the system easier. This can be achieved by simplifying tax filing procedures, providing hands-on training, and using user-friendly digital tools to support business owners.
In conclusion, the launch of GST is a historic move for our nation, and the government deserves praise for moving forward with it. By making registration automatic through trade licenses and removing the threshold, we can create a fairer, more transparent, and highly effective tax system. With proper digital and educational support, all Bhutanese businesses can successfully participate without facing an unfair burden.
