Sales tax and custom duty on imported vehicles revised

Jun 17, 2010

The sales tax and custom duty for import of vehicles have been revised beginning today. Earlier a custom duty of 20 percent and a sales tax of 15 percent were levied on all kinds of vehicles.

Now, if you purchase a vehicle with up to 1500 cc, you will have to pay 10 percent more customs duty and five percent more sales tax on the existing one.

For vehicles with 1501 to 2000 cc a customs duty and a sales tax of 30 percent each will be levied.

If the vehicle is 2501 cc and above a customs duty of 15 percent and a sales tax of 30 percent will be charged.

This means all vehicles imported and entering the country on or after June 17 will have to pay the revised sales tax and customs duty.

Except for vehicles imported from India, the rest will have to pay the customs duty. This is because of the free trade agreement between Bhutan and India.