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The 9Th Annual General Meeting of Drc ” Newsletter DEPARTMENT OF REVENUE AND CUSTOMS MINISTRY OF FINANCE BHUTAN Jan/Feb 2003 ISSUE 13 THE 9TH ANNUAL GENERAL MEETING OF DRC THE 9 TH ANNUAL GENERAL MEETING of the and it was also the first year of PIT. He Department of Revenue and Customs was held informed that the revenue projection would In this Issue from November 25-30, 2002 at the conference be discussed and added that the tax hall, Regional Revenue and Customs Office, incentives announced by the RGOB will The 9th AGM .................................. 1 Thimphu. Over 50 participants attended the have a negative effect on revenue in the News in Brief ............................... 2 meeting from five Regional Revenue and short run, but in the long run greater PIT Awareness Campaign............. 3 Articles ......................................... 4-5 Customs Offices, Head Office, Liaison & Transit revenue would be generated from the new Face to Face ................................. 6 Office and Ministry of Finance. industries that are established in response Comments from the Field ............ 7 The objectives of the meeting were: to the incentives. Administration & Personnel ........ 8-10 ● To review the revenue projection for In-country Training....................... 9 2002-03 and progress in revenue Ex-country Training...................... 9 collection. The whole department Around the Divisions .................. 11 “ Around the Regions ...................12-13 ● To share field experiences and resolve should be equally Highlights: 8th FYP & common issues/problems faced by the concerned and accept 9th FYP Plans............................... 14 regional offices. responsibility for the Humour ........................................ 15 ● To strengthen the monitoring, Tax Officials Meet ........................ 16 evaluation and internal control system. lapses in Paro Airport ● To coordinate an exchange of and avoid recurrence of information between head office and such incidents.” Paro Airport and avoid recurrence of such the regions and between the regions to Finance Minister incidents.” He urged all participants to ensure uniformity in implementation of Lyonpo Yeshey Zimba express their views openly during the the acts and rules. discussions and to recommend measures ● To draw up appropriate strategies and Dasho also commented that the September to root out corruption - with special action plans for effective and efficient incident in Paro Airport Customs was an emphasis on establishing proper administration. eye-opener for the Department and that a monitoring and evaluation mechanisms. ● To provide better taxpayer services and discussion on ways to curb corruption and Over the six-day meeting, various issues improve collection of taxes and duties. improve the internal control system must of concern to DRC were discussed take place during the meeting. In his welcome address, the Director Mr. extensively. With the lapses at Paro still Nima Wangdi, thanked His Excellency the The Finance Minister in his opening fresh on our minds, it will best be Finace Minister and the Finance Secretary address expressed great concern and remembered as a period of reflection and for gracing the opening of 9 th Annual embarrassment on the involvement of our self-examination. It was therefore not General Meeting of DRC. The Director staff at Paro Airport in the smuggling case. surprising that much of the discussions welcomed the participants and stated that His Excellency stated that, “the whole veered around the topics of service ethics the meeting was particularly important as department should be equally concerned and strengthening internal control and it coincided with the first year of the 9FYP and accept responsibility for the lapses in accountability mechanisms. Jan/Feb 2003 - ISSUE 13 - Public Information Services, DRC. Ph 324357/Fax 323608. e-mail:- [email protected] 1 p 1 5/15/03, 10:47 AM NEWS IN BRIEF TAX INCENTIVES ANNOUNCED REVENUE COLLECTION THE MINISTRY OF FINANCE (MOF) ● Other incentives include: FOR FY 2001- 2002 announced numerous tax incentives, which - income earned in convertible currency The Department of Revenue & Customs was presented to the 80th session of the by manufacturing industries, information has exceeded the revenue target of National Assembly by His Excellency the technology industries or services Nu. 4,943.823 million for the Fiscal Year Finance Minister, during the budget and agriculture produce will 2001-2002. The total internal revenue presentation. The tax incentives are be exempt from CIT/BIT; collection reached Nu. 5,093.593 million provided to stimulate private sector - the existing export tax has been which accounts for 9% growth over the investment and came into force with effect abolished; previous years collection. from January 1, 2003. - the tax deductible salary limits will not apply to incorporated companies; The collection comprises of Nu.2,566.941 In brief tax incentives include the - reinvestment allowance of 20% will as tax revenue and Nu.2,526.653 as non- following: be provided to incorporated companies. tax revenue. This is the second year that ● removal of sales tax and customs duty the tax revenue has exceeded non-tax on plant and machinery and raw Furthermore, under the Income Tax Act of revenue. This would not have been materials the Kingdom of Bhutan, 2001, clarification possible without the concerted efforts of ● tax holiday for manufacturing industries; and revision on PIT was also announced. our regional offices and the revenue IT training and vocational institutes; (The details have been published and agencies. hotels, schools and auto-mechanical distributed). workshops established in the interior Compiled by Revenue Accounts & Audit JOINT ANNUAL REVIEW MEETING - DANIDA PROJECT The team conducted extensive technical through extensive training courses. review meetings with DRC as this is the last The team mentioned that DRC should year for the Danida Project Phase II which be well prepared for the 9th Five Year Plan commenced from the year 1998. where the challenge will be to consolidate DRC submitted a comprehensive review what has been achieved so far, enforce the report with details of the activities taken up PIT (Personal Income Tax) and deconcentrate The fourth Joint Annual Review of Danish by DRC from inception till date and the activities to new regional offices. Yangchen Chhoedon, Under Secretary assistance to the Good Governance & Public proposal of the new budget/activity for the Administrative Reform Programme was held current fiscal year of which the Phase II in Thimphu from April 15-26, 2002. project ends in July 2002. The mission also ACCESSION TO WCO Bhutan has now acceded as a member to looked into the formulation of the new phase Bhutan has now become a member of the THE JOINT REVIEW TEAM consisted of i.e Phase III proposed by DRC in keeping World Customs Organisation (WCO) with effect from February 2002. external consultants Mr. Niels Palmvang and with the 9th Five Year Plans and Programmes. Mr. Kristian Edinger from Ministry of Foreign As a WCO member, we must ensure that In the overall assessment, the team Bhutan’s customs rules and procedures are Affairs Denmark, officials from Liaison Office remarked that the project for DRC has been in keeping with the international norms and of Denmark (LOD) and Department of Aid practices. Correspondingly Bhutan, very successful in terms of broadening tax particularly DRC will also benefit in terms and Debt Management. base and in building the capacity of DRC of training in various customs field that are provided to WCO member countries. DRC organised 5 days in-country training program on WTO Valuation Agreement with the assistance of World Customs Organization & Japanese Customs Administration from December 2 – 6, 2002 at the conference hall of RRCO Thimphu. The above program was conducted by two resource speakers Mr. Liu Ping, Technical Officer, WCO and Mr. Takayuki Miyoshi, Customs Officer, Japan Customs, Tokyo. 29 participants, including 14 new recruits and 15 in service candidates took part. The above program was In-country training program on WTO Valuation the first of its kind conducted in Bhutan after the accession to the membership of WCO in February 2002. Agreement, December 02 – 06, 2002 Jan/Feb. 2003 - ISSUE 13 - Public Information Services, DRC. Ph 324357/Fax 323608. e-mail:- [email protected]/drc 2 p 2 5/15/03, 10:47 AM PERSONAL INCOME TAX AWARENESS CAMPAIGN FROM THIMPHU TO GASA, SAMDRUP JONGKHAR TO LHUNTSI, THE PIT AWARENESS PIT CAMPAIGN CAMPAIGN REACHED ACROSS THE LENGTH AND BREADTH OF THE COUNTRY A SUCCESS Following the enactment of the Act, the ● Teaming up with other organizations, The PIT campaign was successfully PIT tax awareness campaign was planned and private corporations to enlist and implemented due to close cooperation and programmed to run from August 2001 engage people in attending the received by HQ from the regional offices st workshops, distribution of information upto March 1 2003. The primary objectives Enhancement of PIT campaign of the campaign were to: materials etc. During the second tax official’s meet, held ● ● Gain acceptance by the general Setting up of PIT information centers in from 22 to 26 July in Thimphu - the PIT public since PIT is a new tax. prominent public venues during special campaign was further enhanced with ● Educate and encourage potential PIT occasions. feedback received from the participants. taxpayers to register with the Mass Media Two main areas were focused on; a report department.
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