Bhutanese economy may be hit by GST: ADB

Bhutanese economy may be hit by GST: ADB

The GST may have an adverse impact on the Bhutanese economy through trade and revenue channels, the Asian Development Bank (ADB) said in its latest report.

The total trade between India and Bhutan was valued at $817 million in 2016-17, up from $750 million a year ago, as per Indian government data. India’s exports to Bhutan totalled $509 million, while imports came at $308 million.

“India’s GST, implemented in July 2017, may have an adverse impact on the Bhutanese economy through trade and revenue channels,” stated the Asian Development Outlook 2017 Update report.

According to the report, Bhutan’s imports will likely increase as Indian exports are zero rated under GST, making the imports cheaper.

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