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Green tax to be at 20%

Jun 27, 2012

Vehicles with engine capacities of 1,800cc and above will now be levied 20 percent green tax. Other vehicles with less than 1800cc will have to pay 5 percent green tax, decided the National Assembly. After much deliberation, the National Assembly today endorsed the Tax Revision Bill 2012.

Thirty three members out of 40 voted in favor of the Tax Revision Bill. The finance ministry had proposed a green tax of 40 percent on luxury vehicles. However, most of the members were against it, claiming the figure to be too high.

The Doga-Shaba MP, Chencho Dorji, and Bumdeling-Jamkhar MP, Dupthob, said the 40 percent green tax proposed would affect many people.  “It should be reduced to 20 percent for the benefit of people,” said MP Chencho Dorji.

Members also debated that the green tax should also be levied on vehicles with less than 1,800cc. “40 percent tax on vehicles with engine capacity of 1,800cc and above will not help solve the rupee crisis in the country. If we want to solve this problem, taxes should be levied on all vehicles,” said Drujeygang-Tseza MP Sonam Jamtsho.

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Meanwhile vehicles such as buses used for general public transport, trucks and pick-ups will be exempted from green tax.

Green tax on refrigerators, air conditioners and fuel will remain the same. Tax on other items such as meat, fish and eggs will also remain unchanged.

Though majority of the members were in favor of the proposed 100 percent sales tax on all alcohol products, the National Assembly decided against it on the grounds that the alcohol tax was raised last year.

1 Comment for “Green tax to be at 20%”

  1. Tashi

    So if I understand it correctly, vehicles above 1800cc, whether they are imported from India or elsewhere, will be levied a green tax of 20% and those less than 1800cc will be levied a green tax of 5%, again irrespective of where they are imported from. If that is the case, it sounds better than the initial government proposal. Because the moment we distinguish between Indian and other foreign cars, it sucks. As MP Tshering Penjor said, whether they are 1800 cc or 5cc or 1cc, they pollute. Similarly, whether they are made in India, Japan or Korea, they pollute. If it’s a green tax, no car should be spared, except electric or hydrogen cars! t The difference in tax levels based on “cc” does make sense.

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