Just like the National Council had rejected the government’s tax revision proposal, the National Assembly today, also rejected all the recommendations by the National Council on Tax Revision Bill.
The National Assembly members decided that the vehicles with engine capacity of 1,800 cc and above will be levied 20 percent Green Tax. Other vehicles with less than 1800 cc will have to pay 5 percent tax.
The finance minister, Wangdi Norbu, said he is not satisfied with the recommendations from the National Council on the Tax Revision Bill.
Lyonpo said the National Council is said to be a house of review but they have not reviewed the budget report in entirety. They have deliberated extensively only on small issues like expenditure, said the minister.
The Deputy Speaker, Yangkhu Tshering Sherpa, also said he cannot understand the National Council’s argument. “In their recommendation, the National Council has cited reasons for rejecting the proposal on Green Tax by saying that the owners of the luxurious vehicles are from the lower income group.” Yangkhu Tshering Sherpa said he does not buy the argument.
The National Council on Monday had voted against the Tax Revision Bill. Out of 22 votes, 21 had voted against the Bill and one had abstained.
Meanwhile, the finance minister also proposed if the National Assembly could re-deliberate the government’s proposal to levy sales tax on Alcohol.
The Health Minister, Zangley Dukpa, supported the proposal. “I feel the sales tax should be levied on alcohol. The health ministry especially will benefit from this,” said Lyonpo Zangley Dukpa.
However, the Speaker, Jigme Tshultim, said the House has already endorsed against the sales tax on alcohol. The National Assembly had decided against it on the grounds that the alcohol tax was raised last year.
