The Department of Revenue and Customs (DRC) signed a contract with Data Torque Limited (DTL) for the development of the Bhutan Integrated Taxation System (BITS). By investing in BITS, the government aims to broaden the taxpayer base, enhance resource mobilization, and improve taxpayer services. Data Torque Ltd. was selected through an international competitive bidding process, for their expertise in customizing Commercial off The Shelf (COTS) solutions.
The overall duration of the project is five years, with three years for implementation and two years for the warranty period.
The project will be executed in three releases, that is, Goods and Services Tax (GST) within 12 months, Non-Tax and TDS in six months, and Direct Tax in 12 months.
The Director General (DG) of DRC, Sonam Jamtsho said that the development and the implementation of the BITS not only represents the technological upgrade but it also represents a transformative league in the country’s tax administration where it will broaden the tax payer base and enhance resource mobilization from domestic resources and eliminate the overall quality of tax payer services.
The DG said that by investing in the BITS, the country is laying out the foundation for a more resilient and prosperous future.
“With the combined efforts of the DRC and Data Torque Limited, we are confident that both the parties will stay on track with the project timeline,” said DG.
The system will feature real-time data processing, automated tax filing, e-invoicing, and a user-friendly interface for taxpayers.
Similarly, Kuenzang Thinley, the commissioner of BITS and GST Project said that the department is confident in the success of the project and that they will work towards the objective of BITS to full fill its mandates.
Kuenzang said that with the BITS, the system will be integrated where all the taxes will be under one system and the tax payer will also have one gateway to enter the system.
The commissioner said that International Monetary Fund (IMF) has immensely supported the department throughout the process of the project.
The Commissioner said that the GST will help ease the burden for both the tax payers and tax evaluation since the GST will not lead to taxing people more rather it will help to streamline the tax.
“Currently, there isn’t a uniform tax with rather are multiple rates within the range of 7% to 15% where it is very challenging to comply but with GST we will have one uniform rate of 7%,” said the commissioner.
Kuenzang also highlighted that with the implementation of the GST, the tax payer will have to come after the DRC as the tax payer will have a credit facility to collect from the DRC since the tax payer will have tax incentive to collect from the department.
BITS will also replace the outdated Revenue Administration Management Information System (RAMIS), providing more efficient and effective tools for tax administration.
According to the DRC, the contract signing is a significant milestone for tax reform in Bhutan as the implementation of BITS will represent a transformation in how taxes are administered in Bhutan. “Together, we have the opportunity to set a new standard in tax administration that will benefit our country for years to come,” the department stated.
Sherab Dorji, Thimphu