The government has begun taking steps to simplify the Goods and Services Tax (GST) filing process, responding to concerns from businesses grappling with the system’s initial rollout. Officials say efforts are focused on improving usability and reducing compliance burdens, particularly for small taxpayers.
Finance Minister Lekey Dorji said the GST represents a significant long-term reform designed to modernise the country’s taxation framework. He noted that the system aims to enhance efficiency, transparency and overall economic productivity.
At the same time, the minister acknowledged that the transition has not been without difficulties. Businesses, especially smaller enterprises, have faced added pressure as they adjust to new procedures and reporting requirements.
Introduced on January 1 this year, GST is still in its early stages, Dorji emphasised. He cautioned against drawing direct comparisons between current revenue performance and the previous tax regime.
“Being in its early phase, current revenue outcomes should not be directly compared with the previous system,” he said, adding that international experience shows such reforms typically involve an adjustment period before compliance improves and revenues stabilise.
Authorities are continuing to consult with stakeholders, including businesses and tax professionals, to refine the system based on real-world feedback. The goal, according to the minister, is to ensure that implementation challenges are addressed while preserving the broader benefits of the reform.
Dorji also pointed out that GST—or value-added tax (VAT)—has been adopted by 176 economies worldwide, where it is widely regarded as a modern and comprehensive consumption tax model.
On concerns about rising prices, the minister said that while GST may appear to contribute to short-term inflation, it ultimately creates a more transparent system that reduces the cascading tax effects seen under earlier frameworks.
The government has reiterated its commitment to improving GST implementation, signalling that ongoing adjustments will be made to ease compliance and deliver sustainable long-term gains for the economy.
