There are numerous inquiries from car buyers following the government’s recent notification directing eleven car dealers to refund excess green tax charges to their customers. These dealerships, now responsible for processing the refunds, are encountering several complications caused by changes in vehicle ownership, outdated contact information, and alleged discrepancies in the amounts. While some have processed refunds, others are still working through the process, urging eligible individuals to wait for direct contact to avoid unnecessary visits.
Addressing the misconception that all vehicles purchased between 2019 and 2024 are eligible for refunds, dealerships clarified that refunds apply only to specific vehicles based on revenue and customs departments’ criteria. Some report individuals travelling to Thimphu from areas as far as Trashigang to seek refunds only to discover they are either ineligible or entitled to significantly smaller amounts than expected. Refund amounts range from as little as Nu 10 to over Nu 100,000 for each vehicle.
The Ministry of Finance also said that refunds cannot be self-calculated as they depend on vehicle type and invoice inconsistencies.
Dealerships assured customers that eligible individuals will be directly notified to avoid unnecessary visits.
Meanwhile, the Department of Revenue and Customs has provided chassis numbers to identify eligible individuals for refunds. However, dealerships have expressed difficulties with the process. While some vehicles have changed ownership multiple times, complicating efforts to track current owners, some customers have relocated abroad or updated their contact details, further hindering communication.
In certain cases, the dealerships also report that vehicles were purchased using another person’s quota, which requires a no-objection certificate from the original quota holder to be eligible for a refund.
Additionally, the Department of Revenue and Customs mandates that dealerships obtain signatures or initials from refunded customers as proof of payment, but this is proving difficult, particularly in the case of individuals who live in other districts or abroad.
Some dealerships have reported discrepancies between the refund amounts calculated by their teams and those listed in the DRC’s notification. While many are still reviewing their records, several have already raised concerns with the DRC. Shingkhar Auto, for example, has noted that the refund amount of around Nu 520,000 indicated by the DRC is significantly higher than their own calculation of approximately Nu 300,000. The DRC has said that they are actively reviewing the cases to ensure accuracy and resolve the potential discrepancies.
Meanwhile, in the midst of these developments, dealerships like Freedom Motors claim that their dealership had no refunds to issue, despite the DRC’s records suggesting otherwise. Upon reaching out to the DRC, the dealership was informed that discrepancies, such as mismatches in vehicle trims, had caused the confusion. However, the DRC has not yet provided confirmation on the matter.
Despite challenges, dealerships like Leksol Motors and Samden Motors have completed issuing refunds and await DRC clearance. Others are reviewing records to identify eligible individuals but assure refunds will be processed within one month, which ends in mid-February—most plan to begin disbursing refunds this week.
Karma Samten Wangda
Edited by Phub Gyem
