the import of foreign alcoholic beverages is highly taxed with respect to those alcoholic beverages produced within Bhutan. Explain

Putting a full stop on the import of alcoholic beverages is out of question, says the Finance Minister Lyonpo Wangdi Norbu.

The minister was responding to BT’s query about the possibility of a ban on the import of alcoholic beverages in the near future, at the sidelines of the last Meet-The-Press.

The Finance Minister said disallowing alcohol imports would not be a right approach.

He said such issues should be tackled with systematic measures, explaining that levying high import taxes can be reckoned as a pertinent limiting factor.

“Ban on import of foreign drinks is out of question considering the substantial revenue generated by imposing high taxation on these products,” the minister said. Lyonpo said such restriction is not on the cards, at least for quite some time. Similarly, the Labor Minister, Lyonpo Dorji Wangdi said such policies, if at all come to action, would not prove sensible. “People have every right to consume foreign drinks as long as they can afford to pay,” he said, adding the ban should not materialize as a government strategy.

Explanation:“The fees for registering alcohol brands like Red Label whiskey in the country alone works out to be approximately Nu 20,000 in one year. Ultimately the benefit goes to the people,” the minister said. Observers say ban on the import of foreign liquor could prove beneficial at this time given the rupee problem as the import of such commodities has been rising each year. A study carried out by a Task Force to compare contribution of major commodities to total consumption expenditure revealed that alcohol beverages, tobacco and narcotics falls under the top 12 commodity attributors. For example, the report exhibits import of beer as a major import item from India. While Nu 233.06 million was spent in 2009, the import expenditure drastically augmented to Nu 314.75 million in 2010. Some say limiting import of liquor would also help reduce consumption and alcohol related morbidity to certain extent. There are five operational breweries in the country and two more are expected to come up soon. While the annual production of the Army Welfare Project (AWP) in the year 2010 stood at 6.9 million liters, surprisingly, the total consumption of alcohol in the same year was 40.75 million liters. The two AWP distilleries in Gelephu and Samtse.

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