Bhutan Duty Free was officially launched on 16 May. Photo by Kuensel Online |
BHUTAN. All of Bhutan’s duty free outlets will now operate under a state-owned company called Bhutan Duty Free, according to local media Kuensel Online (as always The Moodie Davitt Report is seeking verification).
The enterprise was launched yesterday (16 May) and has been incorporated under the Companies Act, the report said.
The duty free shop at Paro International Airport, which was previously run by Drukair, is among those to now be operated by Bhutan Duty Free as the government looks to improve duty free revenues.
The director of the government’s Revenue and Customs department Yonten Namgyel will serve as Chairman of the new business.
Bhutan national newspaper Kuensel quoted him as saying that duty free shops were currently seen as liquor outlets “for an elite group of people” but that Bhutan Duty Free would diversify the duty free offer to change this perception. It intends to stock high-value luxury items such as electronics and cosmetics that are not available in the country.
The decision to corporatise the duty free business also makes it easier for the government to monitor and regulate imports of alcohol and the sale of other duty free items in the country, the report said.
Duty free shops in Bhutan generate about NU94 million (US$1.4 million) in sales each year, Kuensel noted. The government is expecting annual revenue growth of +40% should business expansion plans materialise.
