Manufacturing & Industrial Production

Manufacturing is not one of the eight priority industries of the Gelephu Mindfulness City by name, but it runs through two of them: high-value processing sits within Agri-Tech and Forestry, and industrial processes that need clean power at scale sit within Green Energy and Technologies. Because the first stage of registration assesses alignment with the priority industries, a manufacturing proposal is framed around the pillar it serves. The Customs Act 2025 is the operating statute. Excise duty is charged on goods manufactured in GMC at rates set by Gazette order, a manufacturer of dutiable goods needs a manufacturing licence, dutiable imports arriving by air or road go first into a free trade zone, and duty paid on imported inputs is recoverable by drawback where the finished product is exported within twelve months. The customs tariff classification and sales tax of Bhutan apply in GMC through the Application of Laws Act 2024. Under the Income Tax Act 2025 the company rate is 15%, plant and machinery attract a capital allowance of 33⅓% a year, automation equipment and robots can be written off on an accelerated basis, and a strategic and development company may be approved for a rate of not less than 5% until 31 December 2030. Industrial sites come through the Economic Development Group on long-term leases, and a principal is jointly and severally liable for contractors' workmen's wages under the Employment Act 2025.

Basnet Law Pte. Ltd. advises manufacturers on company formation and priority-industry framing, industrial site leases through EDG, manufacturing, warehouse and free trade zone licences and drawback under the Customs Act 2025, incentive applications, supply, offtake and equipment contracts under the Sale of Goods Act 2026, work passes and employment compliance, and disputes.