The prime minister has instructed vehicle dealers in Thimphu and Phuentsholing to refund customers for overcharged Green Tax within a month. The overcharged amount comes to around Nu 31 M. The prime minister said this during a meeting with the vehicle dealers yesterday.
Tax officials found that 11 out of 38 dealers had overcharged customers while remitting lower amounts to the government.
The issue was uncovered by the Department of Revenue and Customs during an analysis of the impact of taxes on vehicle pricing.
In the meeting with the prime minister, the finance minister, and senior officials, the vehicle dealers were urged to maintain reasonable vehicle prices.
The prime minister acknowledged the need for dealerships to generate profits but emphasised that pricing should remain fair to customers.
He informed the dealers that if pricing practices are not addressed, the government may publicly disclose vehicle import cost details to ensure transparency.
The prime minister instructed the Ministry of Finance to ensure that affected customers are refunded and to streamline invoicing practices to prevent future irregularities.
The dealers were further reminded to clear any outstanding taxes to the government within the same timeframe. Similarly, if the government owes any refunds to dealers due to discrepancies in sales tax, such amounts should be reimbursed upon the submission of supporting evidence.
According to the Green Tax Rules and Regulations of Bhutan 2024, the Green Tax is applicable to goods, services or activities and at such rates as
may be approved by the Parliament from time to time.
Currently, passenger vehicles with engine capacity of 1800 cc and above are charged a green tax of 20 per cent. Similarly, vehicles with engine capacity of 1800 cc and below and vehicle such as public buses and utility vehicles have to pay 5 per cent green tax. Electric vehicles are exempted from green tax.
Karma Samten Wangda
Edited by Tshering Zam
