The Government of India (GoI) handed over around Nu 4.001bn to Bhutan as Excise Duty Refund (EDR) for the year 2016 on Thursday.
In 2015, the GoI had refunded Nu 2.91bn in excise duty to Bhutan.
A press release on the Release of EDR claim 2016 states that the major EDR for the year 2016 comes from the import of petroleum products recorded at Nu 1.747mn, followed by import of vehicles and machineries at Nu 690.89mn and Nu 366.76mn respectively.
The EDR for the year 2016 constitutes about 11.53% of the total revenue for the fiscal year 2017 – 2018 and was verified by four-member delegation from the GoI led by Director General Devendra Singh of the Directorate General of Performance Management in January 2018.
During the handing-taking ceremony, Finance Secretary Nim Dorji requested the Indian Embassy to speed up the EDR for 2017 as the month being the last to end the fiscal year as well as the 11th Plan – the last EDR that Bhutan will be receiving from India.
Deputy Chief of Mission from the Indian Embassy Esha Srivastava said they will complete the process soon and will follow up timely with Bhutan.
Meanwhile, excise duty is an indirect tax levied on goods and commodities manufactured domestically in India. As per the bilateral trade agreement, the Indian government refunds to Bhutan the tax it levies on goods India exports to Bhutan on an annual basis.
The GoI refunds the excise duty on annual basis as per Article VIII of the Bilateral Trade and Transit Agreement which articulates that each of the governments agrees to provide appropriate refund to be mutually decided annually in respect of excise duties on goods of its origin exported to the other.
Tshering from Thimphu