The Member of Parliament (MP) of Bumthang, Nima questioned the Government on why hybrid cars are not popular despite the reduction in tax. He also asked about the plans of the government to use hybrid cars as they pledged.
This was asked when the Finance Minister introduced the Tax (Amendment) Bill of Bhutan 2020: The government has slashed the green tax on hybrid cars towards promoting the import and use of hybrid and electric vehicles in the country.
During the presentation of the Bill, the House was informed that the green tax on hybrid vehicles not exceeding 1,500 CC will be reduced to 2.5% from 5%. As for hybrid cars exceeding 1500 CC and not exceeding 3000CC, green tax of 5% will be reduced from the current tax rate.
“Customs duty and sales tax are reduced by 50% in hybrid cars. And 5% reduction in green tax. For a hybrid car not exceeding 1500 CC, we have reduced the green tax by 2.5%,” informed Namgay Tshering, the Finance Minister.
However, MP Nima of Bumthang questioned the Finance Minister on why hybrid cars are not popular despite the government’s initiatives.
“Did the reduction in green tax help in the import of hybrid cars? Or did it encourage the people to buy more because the government is again reducing the tax? Or if the import of hybrid car is not as good as expected, why don’t the government do so. What are the plans of government in the purchase of government cars?” asked Nima, the Bumthang MP.
To this, the Finance Minister said, due to rugged terrain of the country and with no charging stations in place, It is challenging but assured that the government is working on it.
“Unlike in the plains, our country’s rugged terrain is not very suitable. For a hybrid car that can travel 300 kilometres can only travel half the distance here. Charging stations are not in place. One might get stuck at Pelela if we travel without a charging station. I think people hesitate due to these reasons. We will give our importance to electric if not to hybrid cars from now on and we will also work on the purchase of government vehicles,” Lyonpo said.
Other subjects presented by the Finance Minister are tax exemptions on electronic devices such as on telephone, mobile and handset, energy-efficient appliances and the 5% voucher tax exemption on pre-paid and postpaid users.
Pema Seldon Tshering/ Tshering Dhendup
