The International Monetary Fund (IMF) is willing to support Bhutan’s efforts to reform its taxation system and implementing goods and services tax (GST) in the country, Kuensel reports.
Bhutan’s ministry of finance is also looking into implementing the GST system after the Indian GST was implemented in July last year.
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According to the report, during the visit of the IMF’s deputy managing director, Tao Zhang in the country from March 16 to March 20, he asked how IMF could help build capacity for a smooth transition of taxation system from conventional one to a GST regime.
The IMF is also interested to help Bhutan enhance the management of public finances, strengthen financial sector regulation and supervision, and modernize the monetary policy framework, according to a press release from IMF.
“We at the IMF value our relationship with Bhutan and we are committed to continue to support Bhutan and its people on these and other endeavors,” Tao Zhang said.
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During his visit, the Deputy Managing Director (DMD) met Prime Minister Tshering Tobgay, Finance Minister, RMA governor, executives of the financial institutions and members from the private sector in Thimphu.
The DMD congratulated the Prime Minister for Bhutan’s remarkable decline in poverty rates and the increase in per capita incomes over the past decades.
The International Monetary Fund, which was set up in 1945 by 45 members, to promote the health of the world economy, has 189 members.
Bhutan joined the IMF in September 28, 1981 and is currently under the Article XIV status.
Since becoming a member, Bhutan received several technical assistance spanning over various government agencies.