India to refund 625 million rupees of excise duty to Bhutan
The Government of India has agreed to pay the Bhutanese government an excise return of Nu.625 million for imports in 2003 from India by July this year. The Ngultrum (Nu) has the same value as the Indian rupee which circulates at par with it.
The finalised minutes of the excise return was signed between the director, Department of Revenue and Customs, Sangay Zam, and the director general of Inspection ,Customs and Central Excise, India, Mr. B K Gupta inThimphu.
Together with the agreed returns of 2003, the excise team from India also agreed to pay Nu 3.8 million out of the refund claim of Nu. 7 million that was under verification for the calendar year 2002.
The 2003 refund amount is the highest so far. Bhutan imported goods worth Nu 10.2 billion in 2003, up from Nu 7.6 a year before.
The refund amounts to seven percent of the total revenue and 16 percent of the indirect tax revenue of Bhutan.
Almost all manufactured goods imported by Bhutanese traders from India are levied excise duty ranging from 0 to 16 percent.
Today, petroleum products lead the import list fromIndia. Other major imported products were rice, vehicles and machineries..
The excise refund arrangement is based on the free trade and commerce agreement between Bhutan and India.