Beginning today, there will be no sales tax on all Bhutanese goods imported into the Gelephu Mindfulness City except products with added sugar and alcoholic beverages. The exemption applies only to goods imported into GMC from Bhutan. In a news release, the GMC Authority says the move is designed to encourage trade within the country while promoting healthier choices by curbing sugar consumption. It will remain in effect until the end of next year.
The Gelephu Mindfulness City is entitled to sales tax concessions and customs duty exemptions only on goods produced in Bhutan. However, products with added sugar will still be subject to a flat sales tax rate of 15 per cent, considering health policy intent to reduce sugar intake.
Meanwhile, the GMC Authority is reviewing sales tax and customs duties on alcohol products and information will be released soon on this category of products.
According to the news release, GMC, as a separate jurisdiction, importers must provide proof that goods are locally produced in Bhutan. And these exemptions do not apply to items imported from abroad.
Kinzang Lhadon
