English | Dzongkha Thursday, August 16, 2018

Government to discuss five percent tax on transferring vehicle ownership

Dec 27, 2013

Meet-The-Press-vehicle ownershipThe 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.

3 Comments for “Government to discuss five percent tax on transferring vehicle ownership”

  1. Funny

    If cabinet doesn’t come to the rescue, then we will consider this government as indecisive n a big failure

  2. drachom

    Our Lyonchen has fully exposed his ignorance and lack of experience in the government. The officials from RSTA and MOF clarified in your talk show that the 5 per cent property transfer tax has been levied in the country since 1992 under the law. So, his ignorant statement that it was not done under his government’s directive was not only in bad taste but showed a sense of shirking of responsibility. To add salt to injury, his home minister had to make, to certain extent, a contradictory statement but forgot to mention the large number of Indian number plate vehicles being driven in Bhutan by our people to subvert the vehicle import ban.

    Similarly, it is sad to see our journalists are no better when it comes to ignorance of the laws and rules whether good or bad.

  3. Kams

    Things can be done in nicer way if govt is really determined to. This 5% is huge money for most of the 2nd hand car buyers. Rich people do not buy 2nd hand cars with exception of quota which is very few. Make the tax affordable becoz tax has already been paid when imported. If made affordable why people will like to drive cars in others name. Govt need to act on this. I know the PDP govt is more closer to people then DPT govt and they understand peoples’ problem. The dateline given by RSTA is more like waking up from nightmare. RSTA director might have awakened just last month to realize that many cars have not changed the ownership.

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