The Department of Revenue and Customs under the Ministry of Finance denied that the operations of mines and minerals in the country are benefiting only the owners and not its shareholders.
The Public Hearing on Mining operations in Bhutan held recently saw the Member of Parliament from Panbang in Zhemgang, Dorji Wangdi, seeking clarifications from the Department of Revenue and Customs on the matter.
“Going by the data of Chunaikhola Dolomite mines, in 15 years the mining industry has made around Nu 4bn and out of which around Nu 3bn has been given to the government. Only Nu 1bn was left for the owners and the shareholders. In which, there was three company owners and over two hundred thousand shareholders. And the shareholders were only provided with 30 per cent of the profits. Meanwhile, the remaining 70 per cent of the profits went in favour of the owners. Going by this distribution pattern, it seems that the statement of mining operations in Bhutan benefiting only the owners seems right and valid,” said Dorji Wangdi, the Economic and Finance Committee Member.
However, the Director-General of the Department of Revenue and Customs and one of the oldest mining companies, SD Eastern Bhutan Coal Company disagreed on the matter.
“The 18 profit-making mining companies has successfully paid their taxes and it has been increasing over the years. The taxes provided by the companies have immensely benefited a small country like ours. Regarding the fair distribution of the profits made by the companies, I have no say on it. I disagree with the statement that the Mining operations in Bhutan only benefits the owners,” clarified Wangchuk Thayey, the Director-General for the Department of Revenue and Customs.
“As per our opinion, we cannot agree on the matter because due to the mining companies, not only shareholders, it has benefited people and the government as well. We have paid all the taxes to the government during the last 15 years. We have also hired private excavators and vehicles and helped in developing the private sector. We have also been able to employ over 340 people out of which mostly are from eastern Bhutan,” added Yenten Wangchuk, the Company Secretary of SD Eastern Bhutan Coal Company.
Today, there are 37 registered mining companies under the department of revenue and customs. Of it, two are state-owned and the rest are owned by private individuals.
The Economic and Finance Committee of the National Assembly of Bhutan conducted the Public Hearing. Officials from the Department of Geology and Mines, revenue and customs, local governments, National Environment Commission, forests and park services, private miners, state mining corporation and people residing nearby mining areas among others attended the public hearing.
According to the Committee, the hearing is towards passing comprehensive legislation that will uphold the Constitutional mandates and benefit the state and the people. The Bill will be deliberated during the upcoming session of the Parliament.
Passang Dorji
