This is to bring to your kind attention that the Fiscal Incentives Act of Bhutan (FIAB) 2021, enacted by the 6th session of the Third Parliament on 29th November 2021 has identified RNR sector as one of the priority sector eligible for tax exemption and investment allowance under chapters 2 and 3, Part I of the Direct Tax Incentives.
The RNR sector is also eligible for sales tax and customs duty exemptions on plants & machinery, seed & seedling, green house set, drip irrigation set, equipment and tools under chapter 6, Part II of the Indirect Tax Incentives.
Therefore the Ministry would like to encourage all farmers, farmer groups, cooperatives and the private sector to take advantage of these fiscal incentives and contribute towards the nation’s food and nutrition security.
You can find the list of items eligible for exemptions mentioned in the ‘Schedule of Items’ to the Rules on the Fiscal Incentives Act of Bhutan 2021 uploaded on the DRC website at www.drc.gov.bt.
In addition, the third parties such as suppliers or agents importing the above items on behalf of the above beneficiaries will have to pay the applicable sales tax and customs duty at the point of entry but they can later apply to DRC for refund as per the existing rules and procedures in force.
-Ministry of Agriculture and Forests
