Finance Minister explains edible oil GST exemptions

2026-03-09 - 09:14

According to Finance Minister Lekey Dorji, during the GST approval process, the Department of Revenue and Customs (DRC) submitted the schedule to the Ministry of Finance (MoF), which approved it and forwarded it to the Cabinet before submission to the National Assembly. Lyonpo noted that the cabinet had initially thought that all edible oils would be exempted, but due to the BTC codes, only mustard and sunflower oil were covered. Because of the different Bhutan Trade Classification (BTC) codes, exemptions ultimately applied only to mustard and sunflower oil. Lyonpo said, “The government’s intention is not to favour any product, but this happened during the approval process.” Lyonpo said that the MoF revised Schedule IV(c) of the GST Act to simplify the tax system and reduce the number of exemptions, which previously included 234 items to nine essential items, including rice, salt, wheelchair, and edible oils to prevent distortions. Within edible oils, only Sunflower Oil (HS 1512.19.00) and Mustard Oil (HS 1514.19.00) remain exempt. Other oils fall under GST because they are classified under different codes and are generally higher-end or less consumed.