Economic Development Policy of The Kingdom of Bhutan, 2010
|Name of policy||Economic Development Policy of The Kingdom of Bhutan, 2010|
|Subnational region or state||—|
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|Type of policy instrument|
|Policy description|| The Economic Development Policy of 2010 set two main objectives: too achieve economic self-reliance by the year 2020, and to achieve full employment (97.5%).
To reach those objectives, the policy aims to develop several strategies, including diversifying the economic base with minimal ecological footprint, harnessing and adding value to natural resources in a sustainable manner, and reducing dependency on fossil fuel especially in respect to transportation. (Art. 5.b)
Art. 5.b states that "the economic development process shall take into account environment mainstreaming in a phased manner that allows for industries to grow as well as engage in cleaner production. The Royal Government shall also provide incentives for the promotion of green technology, micro-hydro projects, solar, wind, biomass and energy efficiency and conservation programmes. The success of the country’s environment conservation efforts shall be one of the main drivers for developing the “Brand Bhutan” theme. Protection of biodiversity, genetic resources and promotion of indigenous knowledge shall be pursued."
The Economic Development Policy plans to ensure national energy security through capacity allocation, development of storage hydroelectric projects, and through development of solar, wind and other renewable energy sources. (Art 7.2) Art. 7.2 also states that "energy efficiency and conservation measures shall be promoted for sustainable supply and end use."
The Economic Development Policy plans to develop several economic incentives to achieve its objectives.
Art. 9.1.8 states that "Business which has undertaken environmentally friendly technological up gradation shall be allowed income tax rebate of 15% of the up-gradation expenses."
Art 9.1.12 states that "Sales tax and customs duty exemption shall be granted for purchase of electric cars/hybrid cars/cars that run on renewable energy including spare parts."
Art. 184.108.40.206 states that "Green building materials shall be exempted from customs duties and sales tax."
|Date of decision||2010|
|Start date of implementation||—|
|End date of implementation||—|
|Source or references||http://www.biodiv.be/bhutan/legal-instruments/policies/economic-development-policy-kingdom-bhutan-2010|
|Is supported by policies|
|Comments (background and assessment)||—|