Not a single member of the National Council supported the taxes proposed by the government and the amendments made by the National Assembly. The National Council, after deliberating the proposal, at length today, did not pass the Tax Bill 2012.
The government had proposed a 40% green tax on luxurious vehicles. However, the National Assembly had brought it down to 20 percent. The National Assembly members had also proposed a green tax of five percent for vehicles with less than 1800cc.
“To curb the import of vehicle in the name of green tax is vague and irrational,” said the Bumthang representative, MP Tshewang Jurmi. He said the green tax should be levied on mining industries which harms the environment more than anything else.
Haa representative, MP Tshering Dorji, said people are importing vehicles given the weak public transportation system in the country. He said, instead of levying taxes on the import of vehicles, the government should explore means of improving the public transport.
The reviewing body also rejected the green taxes proposed by the government on petrol, diesel, lubricants, kerosene and LPG, refrigerator, freezer and air conditioner.
The National Council members also said ‘No’ to the sales tax on alcohol products. Lhuntse representative, MP Rinzin Rinzin, said Bhutanese people are so habituated to drinking beer that they don’t say they cannot afford it. “Instead they say the price has gone up and continue drinking.” He said such situation will pose more challenges in poverty alleviation in the rural areas.
The National Assembly last week, had also decided against it, on the grounds that the alcohol tax was raised last year, even though majority of the members were in favor of the proposed 100 percent sales tax on all alcohol products,
After much deliberation in the National Council today, out of 22 votes, 21 voted in favour of Zero tax and one abstained.
