The Economic Affairs Committee of the National Council said the National Assembly should revisit customs duty on some 12 different items. The Committee is recommending to keep the rates as before on most of the items reasoning the tax revision could adversely impact the local markets.
The National Council resumed with the deliberation on the Customs Duty (Amendment) Bill of Bhutan 2021 today.
The 12 chapters include betel nuts, fruit juices, water, incense sticks, woven fabrics of silk, Yathra, Dralhams and Tshoglhams, Bhutanese jewellery, electric fence energizers, Dramnyens and Chiwangs, religious ritual items, and ivory items. Except for electric fencing, the committee recommended the rest to be kept at existing rates.
Apart from 12 chapters, some of the council members also said that the tax on fertilisers and furniture should also be included in the deliberation. The existing customs duty on fertilisers is 20 % and furniture is 50 %.
In an extensive deliberation on fertilisers, some members said reducing the tax on chemical fertilisers to zero would only affect the country’s objective of being environmentally friendly.
“Our country is an environmentally friendly country. We also strive to produce organic agricultural products. So importing chemical fertilisers from abroad is not in line with the country’s objective. In chapter 29, even organic fertilisers are taxed at a uniform 10%,” said Ugyen Namgay, the Member of Parliament (MP) of Haa.
“In our schools, our aim is to provide organic vegetables and fruits. So I am concerned how this move would help achieve this objective,” said Sangay Dorji, the Chhukha MP.
“I feel that this move is not in line with the organic policies and rules we have in our country. So it should be properly studied,” added Sonam Pelzom, the Monggar MP.
The revision on tax rates was forwarded to the National Council for deliberation by the National Assembly recently. The Economic Affairs Committee of the National Council will deliberate and draw the final recommendations and submit them to the National Assembly soon.
However, as a Money Bill, the National Council can only recommend, and it is up to the National Assembly to decide on the Customs Duty Bill.
Tshering Dendup/Karma Wangdi
