Tax Windfall: Over Nu 20 million Collected as Property Tax in Just 10 Days

Tax Windfall: Over Nu 20 million Collected as Property Tax in Just 10 Days

Tax payers say online payment has helped them tremendously

A total of 3,620 individual taxpayers have paid their property tax  between 1st January 2025 and 10th January 2025 with the total revenue collection in the period amounting to around Nu. 20 million.

Meanwhile, to increase efficiency in the Property Tax System (PTS) several measures have been adopted. “Taxpayers can now view the details of their property tax calculation including the building details after completing the payment, unlike last year when the details were not accessible once the payment was made,” an officer from the Ministry of Finance (MoF) said.

He added that the approval rights for cultivated kamzhing have been transferred to Local Government (LG) officials, removing the requirement for approval from DRC officials. This change has contributed to saving time and improving taxpayer service.

“Unlike last year, where building owners had to submit correction forms via email or WhatsApp for missing or incorrect building or flat details, they can now easily submit the correct information online by clicking on the “Submit Building/Unit Correction Request Here” option available on the PTS Dashboard,” the officer said.

Further, there is 90% Concession on Chuzhing and No-Development Zones, as identified by the Department of Human Settlement, falling in the urban areas. This is in consideration of the fact that while these lands are located in the urban centers, there are development restrictions imposed by the government on these lands.

However, there have been challenges, such as tax payment for joint ownership: The tax liability for Joint Owners of Land, whose proportionate land rights are not reflected in the Thram, is equally divided among the owners, in accordance with Section 88 of the Land Act of Bhutan which states that the share of land under joint ownership is considered equal among the owners unless otherwise specified in the Thram.

In this case, the DRC is communicating that joint owners of land/buildings/flats, who wish to pay their own portion of the property tax, but whose Proportionate Land Rights are not reflected in the Thram to update the thram/flat details by visiting the respective Land Sector Offices as notified vide  Notification On Property Tax dated15th April 2024 and Notification On Property Tax dated 31st October 2024 available on DRC website http://www.drc.gov.bt/.

Property owners are also required to register with NDI to access the PTS system for paying applicable property tax. However, it has been observed that most property owners are unaware of the NDI system and its integration with the PTS for paying property tax. As a result, property owners often feel frustrated and confused. This confusion has led to an increase in the number of taxpayers visiting the office in person instead of paying online. Consequently, there are longer wait times, overcrowding, and reduced efficiency, which further aggravates taxpayers’ frustration.

Therefore, implementing an aggressive awareness program about NDI is essential to resolve this issue and benefit taxpayers. Nevertheless, it is worth noting that the number of NDI registrations has increased since the introduction of the PTS in January 2024.

Meanwhile, online payment has come as a boon for the people. The shift to online tax payment has brought about a transformative change, simplifying the process for taxpayers and enhancing transparency. Citizens from diverse walks of life are lauding the benefits of the new system, which is revolutionizing the way taxes are paid and managed.

Karma Namgyel, who recently started a garments business, emphasized the mutual benefits for both taxpayers and the government. “The process of fulfilling civic duty has become more accessible, efficient, and empowering. It has transformed interactions between taxpayers and the government, making tax payments easier, faster, and more secure,” he shared. Reflecting on the past, he recalled, “I remember accompanying my father, carrying bundles of cash to pay taxes. Now, it’s as simple as a few clicks.”

For Tashi Wangmo, a housewife, the transition to online tax payment was initially challenging. “Last year, I faced some problems because I didn’t know the procedure. However, the Department of Revenue and Customs (DRC) started advocating through social media and other platforms, and this year, I had no issues,” she explained. She highlighted how improved accessibility significantly reduces the time and effort involved, enabling citizens to meet their tax obligations promptly.

Ngawang, a contractor, pointed out the broader advantages of the system, particularly in fostering transparency and accountability. “Online tax payment platforms allow taxpayers to view their payment history, receipts, and tax liabilities in real-time, promoting trust between the government and its citizens,” he noted. Previously, delays in acknowledging and processing tax payments often led to disputes and inconveniences. “Now, taxpayers receive instant acknowledgements upon payment. This immediate confirmation provides peace of mind and serves as proof of compliance for future reference,” he added.

Another significant advantage of the online system is the expedited processing of payments. This ensures that funds reach the government more swiftly, enabling faster allocation of resources to public projects and services. The efficiency benefits not just individual taxpayers but the nation as a whole.

Ugyen Tenzin From Thimphu