The Speaker withdrew the National Assembly’s Economic and Finance Committee’s SDF waiver recommendation for Indian tourists visiting the border towns for up to a few days. The Committee recommended the waiver as a means to help the growth of businesses in the service industry in the border towns. The Committee reasoned that this will solve the country’s negative balance of trade.
The Tourism Levy Act of Bhutan 2022 and Tourism Rules and Regulations 2022 mandate a visitor within the border towns of Bhutan or travelling beyond the designated point to pay a Sustainable Development Fee of Nu 1,200 per person per night.
But as per the Economic and Finance Committee’s observation, this has led to many visitors opting to halt the nights across the border to avoid paying the SDF.
The committee said this has affected the businesses in the service industry including hoteliers, restaurants and entertainment centres in areas such as Phuentshogling, Samdrup Jongkhar and Gelephu among others.
“They will spend a night across the border, and visit Bhutan in the morning with packed lunch and not even drink water in Bhutan. There are so many chances. We also heard that a lot of people are planning to build hotels there,” said Kinga Penjor, Chairperson of the Economic and Finance Committee.
“In a place like Samdrup Jongkhar, if the government could make it possible for the Indian tourists to visit till Dewathang. The number of days where the SDF is waived could be two or three days. This will help everyone,” said Ugyen Dorji, Dewathang Gomdar MP.
“Hotels in Phuentsholing are suffering. The number of Indian tourists that they used to receive has decreased and people working are suffering. They are our people. For them to make income, Indian tourists should be waived SDF for two to three days. If they stay beyond that, they should be levied as per the law,” said Ugyen Tshering, Lamgong Wangchang MP.
However, Speaker Wangchuk Namgay withdrew the recommendation from voting. He said the committee’s recommendation contradicts section 9.1 of the Tourism Levy Act of Bhutan 2022. The section of the Act only grants SDF exemption for day tourists who do not travel beyond the first designated point.
Samten Dolkar
Edited by Phub Gyem
