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Customs duty exemption on imported books violates Constitution: Opposition

August 10, 2015
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Opposition-Exemption of customs duty and sales tax on all books imported during 2015 violates the Constitution, Opposition says. “The Opposition Party is deeply concerned with the repeated unlawful acts of the Government.”

A press release from the Opposition cites Article 14, Section 1 of the Constitution which states that taxes, fees and other forms of levies shall not be imposed or altered except by law”.

In July, the government had exempted the 20 percent custom duty after the bookstore owners in Thimphu put up an appeal letter to the Prime Minister, Tshering Tobgay to allow them to continue importing books from India without the customs duty and sales tax.

The press release also quotes the Supreme Court’s verdict on first constitutional case between the Government and the Opposition Party.

“The verdict states the inconsistent provisions of the Sales Tax, Customs and Excise Act 2000 must be deemed to have been eclipsed by the latter law. The latter law here refers to the Constitution and the Public Finance Act 2007.”

The exemption of taxes without due parliamentary process is a direct violation of the Constitutional provision and it clearly tantamount to alteration of taxes, the press release states.

“Imposing and altering of taxes must be decided by the elected representatives of the people in its entirety and not only by a sub-group represented by the executive,” the Supreme Court Judgment had further stated.

The court’s verdict had gone on to say that under no circumstances the authority to impose or alter taxes may be delegated to the Executive.

“The imposition or alteration of taxes must comply with the legislative process for making laws at all times as provided under sections 234-238 of the National Assembly Act.”

“While it is not our intention to stop the incentives to the book dealers, we urge the Government to abide by the provisions of the Constitution and the ruling of the Supreme Court on the first Constitutional case and follow the due legislative process in all its actions.”

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