English | Dzongkha Wednesday, September 23, 2020

Supreme Court upholds High Court verdict

Feb 24, 2011

The Supreme Court has upheld the decision of the High Court on the first Constitutional case concerning the government’s decision to revise the tax on the import of vehicles.

The verdict was passed this afternoon.

It says the tax revision did not follow the required process and was unconstitutional. Therefore the government must refund all the taxes collected under the revised tax. It says the tax revision did not comply with the legislative process as provided under the Constitution, denying the members of the opposition the right to vote on the issues. It states that the opposition was not against the government increasing the tax but the process through which it was increased. The verdict says the government’s argument that it has the authority to revise indirect taxes does not have legal basis as the Constitution does not differentiate between direct and indirect tax.

The sales tax and customs duty on the import of vehicles was revised in June last year. Following the revision, the Opposition Leader took the government to court for not adhering to the Constitution and the Public Finance Act.

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