| Rate structure |
Variable: 10%–100% depending on item |
Flat rate of 10% for most items following rationalisation exercise |
| Rationale for change |
Complex, item-specific rates (see Table A.1) |
Rationalisation to increase trader compliance, improve transparency, and reduce discriminatory application of different rates |
| Revenue impact |
— |
Drop in total custom duty collection following rate reduction to flat 10% |
| Exemptions |
Diplomatic missions and international organizations; Bhutanese organizations and agencies; industrial plant, machinery, spare parts and raw materials; electric or hybrid vehicles; re-exported durable and consumable household and personal effects |