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National Assembly rejects proposal to levy 30% Customs Duty on the import of Wood and Articles of Wood

June 8, 2021
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The National Assembly today rejected the Economics and Finance Committee’s proposal to levy 30 per cent of Customs Duty on the import of Wood and Articles of Wood instead of reducing it to 10 per cent. The exiting Duty on Wood and Articles of Wood varies from 10 per cent to 50 per cent. The committee said the reduction in duty will affect wood-based industries in the country and it also contradicts the government’s plan to export wood-based products.

“I support the reduction of customs duty. People who don’t use wood think we have plenty of trees and yet we import from other countries paying a lot of money. Even I was thinking the same. But for those who use wood products, it’s never enough. We have the need for wood and to get the quality one, we have to import,” said Ugen Tenzin, the Member of Parliament of Bji Kartshog Uesu.

“What we have is in domestic scale. If we choose to go on a commercial scale, we have to cut down all the trees in the country and because of this firstly we won’t be able to maintain 60% of Forest Cover in all times to come as per the Constitution. Secondly, during the first Government, Bhutan agreed to remain carbon neutral.  So to produce everything that we need from our forest will affect us,” added Yeshey Penjor, the Agriculture and Forest Minister.

The government proposed to introduce a flat 10 per cent Customs Duty on all goods imported from third countries including Wood and Articles of Wood.

Sonam Tenzin/Sangay Chezom

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