5%. Rural taxes are also imposed on land, houses, and cattle. Other direct duties includes the motor vehicle tax, foreign travel tax, royalties, business and professional licenses, health contribution taxes, and municipal taxes. As part of Bhutan's program of decentralization, local governments and municipalities – including dzongkhags, gewogs, and thromdes, have been authorized to collect property, services, and transactional taxes since at least 1991. Notably, the Local Government Act of 2009 allows thromdes (municipalities) to levy a separate tax on vacancy and underdevelopment. Other legislation authorizes or imposes taxes against particular subject matter. For example, the Tobacco Control Act of 2010 requires persons importing tobacco to pay a tax and to furnish proof of payment upon demand. Like many such laws, the Tobacco Control Act defines a set of offenses and penalties for contravening its taxation provisions. Use of tax money The government either allocates tax revenues for specific state expenditures or deposits them into a Consolidated Fund. The government uses the Consolidated Fund according to budgets passed by law, and may also make grants and investments for the public interest. The national budget is overseen by the Finance Minister, who reports regularly to the National Assembly. The Pay Commission, an independent government body, establishes the pay rate and expenditure budget for members of government. Public expenditure of collected funds is governed by the Public Finance Act of 2007. Tax exemptions Under the Constitution of Bhutan, the Royal Family receives annuities set by Parliament and is exempted from taxation. Registered civil society organizations ("CSOs") are exempt from tax on income or other gains earned as a result of investing endowed property or other funds in accordance with regulations promulgated by the Department of Revenue and Customs. The two types of CSO, Public Benefit and Mutual Benefit Organizations, may be granted exemptions from customs duties or other taxes besides income taxes on a case by case basis under sets of regulations and procedures issued jointly by the Civil Society Organizations Authority and the Department of Revenue and Customs. No customs or duties are levied on goods imported into Bhutan from India, as per the nations' Agreement on Trade and Commerce. Foreign diplomatic missions, international organisations, and government agencies are generally exempted from paying customs duties and sales tax. Under the Sales Tax Act, the Ministry of Finance may also exempt any other person from sales, customs, and excise taxes at its