Bhutanese Consumers Face Double Taxation and Price Hikes During GST Transition Period

• Consumers in Bhutan are experiencing short-term price increases due to double taxation during the transition to the Goods and Services Tax (GST) system.
• Pre-GST inventory is being taxed again at the point of sale under GST, resulting in a dual tax burden on consumers, especially for daily consumables and hardware items.
• The Department of Revenue and Customs (DRC) instructed businesses to maintain stock records, but transitional challenges persist, and no tax relief is being granted for old hardware inventory.
• Some goods, like mineral water, may see price reductions under GST, while others, like milk powder, may become more expensive.
• Most essential items remain zero-rated, so significant price hikes are not expected for these products.

Source: asianews.network

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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