As Nu 2.723 bn worth of smart phones are imported the MoF looks at potential misuse

Talking about the potential import deflection and misuse of the tax free nature of smart phone imports the Finance Minister Lekey Dorji said Nu 2.723 billion (bn) worth of smart phones were imported in 2024.

Lyonpo said the Ministry of Finance is aware of concerns regarding potential deflection of imports, including smartphones, due to tax differentials with neighboring countries.

He said some of the measures adopted to tackle this are enhanced import monitoring to track import patterns, ensure compliance with import regulations; monitoring foreign exchange utilization to detect any anomalies in import transactions in close coordination with the central bank and conduct of periodic audits and inspections of importers to ensure adherence to the prescribed guidelines and prevent misuse of tax exemptions;

 Regarding the enforcement actions, the Ministry is in close coordination with all stakeholders finalizing the regulatory measures against non-compliant importers found violating foreign exchange or import policies. This will include legal action against those engaged in fraudulent activities.

 The government will review the existing taxation and import policies to prevent any unintended misuse of Bhutan’s tax-free status on smartphones and other high-value goods. This will include assessing the need for stricter import conditions, or potential adjustments to taxation policies to align with broader economic and fiscal objectives.

 Lyonpo said the Ministry of Finance remains committed to ensuring that Bhutan’s trade policies support economic sustainability while preventing unintended leakages or misuse of tax benefits.

(i). Total Import of Mobile Phones in Year 2024

Month	Quantity (Numbers)	Value (Ngultrum)
January	10,904	226,879,008.03
February	8,491	192,282,582.16
March	9,105	226,225,711.82
April	11,807	254,059,866.26
May	12,065	235,416,109.56
June	10,169	230,440,045.08
July	10,830	232,965,762.32
August	10,946	203,732,308.32
September	10,365	229,106,177.06
October	14,860	320,971,252.84
November	6,335	143,855,973.19
December	11,366	227,163,127.03
Total	127,243	2,723,097,923.67

(ii) Top Ten Importers- Value Based

Rank	Importer	Value (Ngultrum)
1	ispot tech Distributer	302, 705,840.95
2	Tashi Infocomm Private Limited	286,853,676.85
3	8 Eleven (Aggregate of two licenses)	269,712,456.86
4	JCD i Store	129,939,411.01
5	Tenzin Meto Store	100,963,876.53
6	SmartStore	83,490,082.93
7	iDesire	51,602,811.19
8	MS iStudio	46,683,042.71
9	55 Venture Private Limited	29,512,780.27
10	Data Networks	25,177,226.18
Total Value		1,326,641,205.48

(iii) Top Ten Importers – Quantity Based

Rank	Importer	Quantity (Numbers)
1	8 Eleven (Aggregate of two licenses)	26,460
2	Tashi Infocomm Private Limited	3,840
3	iSpot tech Distributer	3,776
4	55 Venture Private Limited (Aggregate of three licenses)	2,777
5	JCD i Store	1,579
6	Tenzin Meto Store	1,402
7	SmartStore	934
8	iDesire	523
9	Ms iStudio	485
10	Tashi Electronics	450
Total Quantity		42,226