The Prime Minister, Tshering Tobgay, said the government needs to discuss the affordability of the five percent tax imposed as property transfer tax while transferring vehicle ownership. Lyonchhen shared this at the Meet the Press session, this afternoon.
Many people have been complaining that the five percent tax imposed as property transfer tax for vehicles is very high.
Lyonchhen said the directive is not from the government of cabinet. He neither thinks it is from the minister.
“…I don’t know whether the fee is too high or not because I have not discussed it but I do know that it is a clear sign that agency not doing its job in the past. The job needs to be done.”
He said they need to discuss whether 5 percent is too much. “If it is high or low, we will amend it.”
The Home and Cultural Affairs Minister, Damchoe Dorji, added that there is a huge group who evades this five percent tax. “…They come under quota system, quota given to the civil servants. They sell to somebody else. They cannot change the ownership until 7 years. If they do within that period, they have to pay the whole tax and that’s the problem.”
Lyonpo Damchoe Dorji also pointed out there are many vehicles outside Bhutan that are still registered as being in the country.He said this needs to be cleared as well.
“Another serious problem is when you sell vehicles outside the country. Vehicles are physically outside the country but the registration still in Bhutan. There are many cars and trucks still with Bhutanese ownership .I think it is time to clear these things; it is not fair some people paying 5 percent registration fees. This has to be settled. They are doing a good job.”
The need to transfer vehicle ownership is in line with the Road Safety and Transport Authority Regulation 1999. According to the regulation, the seller will have to transfer ownership to the buyer within a period of 15 days.
