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GOODS AND SERVICES TAX BILL OF BHUTAN 2020

Date Introduced: 16 January 2020
Date Passed: 06 March 2020
Type: Government Bill
Status: First Reading

GOODS AND SERVICES TAX BILL OF BHUTAN 2020

Comments on Bill

It is very discomforting to note in the tax bill that no protection for the domestic dairy processing industry is accorded which will make the domestic products more expensive with the imposition of 7% GST for both domestic and imported products.
The domestic producer of dairy products will not be able to survive under the the current proposed tax regime as the imported dairy products will have huge advantage for the domestic producers. For example, a block of processed imported cheese has natural advantage of low cost of production and low cost of inputs elsewhere whereas the ones produced within the country will have to pay higher for the cost of inputs and imported materials with EET of 20% for plastic packaging materials. This will essentially kill the domestic producers and the livestock sector in the country on which 1000s of people depend for their livelihood.
The 0% tax on milk powder for instance will make selling milk in the country more difficult. This will discourage people from imbibing milk drinking culture and go for the less healthy milk powder as an alternative choice which will slowly kill our small farmers and impact the health of our nation.
It is very important that protection is provided for the domestic dairy sector including the farmers and the aggregators such as dairy processing industry if we are serious about our food security and self sufficiency in dairy products.
We will only be promoting other countrys\\\' products at the peril of our own farmers and small rural dairy industries which are important for preventing rural-urban migration and emptying of the villages, taking place at an alarming rate.
I propose that 20% EET be levied on all dairy products imported from other countries to make our domestic sector competitive and create balanced ecosystem for the sector.
I only saw the section on EET and general provisions of the tax bill 2020 and if the above concerns are taken care under the bill, I take back my comments
By Ugyen Dendup, 20/01/2020 11:24:59

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