Exemption of Customs Duty and Sales Tax on Books

According to the existing law, the policy on imported books demand 20% customs duty and 5% sale tax as per the Bhutan Trade Classification Bhutan Sales Tax Schedule and Customs tariff. Generally, the new books fetch high price in the international and global markets leading to increase in the gross investment in dealers’ accounts. If the tariff remains unchanged or increases then the only limited dealers will shut down soon, particularly in the tiny nation like Bhutan where there are fewer readers. Therefore, the exemption of Customs Duty and Sales Tax on Books not only encourage entrepreneurship across the country but also help children, readers’ access to wide variety of books of any kind of genre.  Therefore, this is a noble initiative!

Customs duty is exempted on Indian origin: if the trends remain unchanged, in coming days the country’s book stores will have only Indian origin books. Reading has no boundaries.

The existing law says the book import operational level is managed on risk assessment basis due to large volume imports and lack of space. No detailed verifications are done as the books are considered as low risk products. Books come with no risk, I say. If the truth be searched it is found in the books that are risky (political word).

The Dream Come True for book dealers is when the notification from Ministry of Finance, RGoB, Tashichhodzong, on 24^th July 2015 issued:

‘In order to encourage all Bhutanese to read, especially in the context of the National Reading Year 2015, and in keeping with the authority vested under Part I, Chapter 2 Section 3.2 and Part II, Chapter 3 Section 5.2 of the Sales Tax, Customs and  Excise Act of  Bhutan 2000, the Ministry of Finance is pleased to exempt al books imported during 2015 from the levy of customs duty and sales tax’.

Viewers believe this is a noble initiative from the desk of Finance Minister, Lyanpo Namgay Dorji; however the constitution doesn’t go with us. It is unconstitutional, and the exemption of taxes without due parliamentary process is a direct violation of the Constitutional provision, the opposition remarked.

Nevertheless, the provision also states that ‘on satisfaction and in the public interest, the ministry of finance may exempt a person from the payment of sales tax or custom duty.

Bhutan needs more books, more brains and more heads. If any country is in need of intellects, manpower, or nation builders for today or for the future, it is the books that produce such and such people. Books continue to teach for ages, decades, centuries, or more, and till very end.

The Dream Come True for the readers and dealers will be if the country, constitutional provision, or policies exempt the customs duty on books for some more times.

And my only grievance here is the country should no more ban books regarding the histories of the nation or others.

Listen no more to inane argument from government or media, listen to the wisdom of writers. They believe man is incomplete without reading.

 _sajan