Landowners near the old town of Pema Gatshel are finding land tax filing confusing. They face high property taxes despite the town’s relocation to Denchi in 2023. While they initially welcomed its categorisation as an ‘Urban Centre Without Plan’, they now say it needs updates and reclassification. The issue was recently discussed at the Dzongkhag Tshogdu.
The land near the old town of Pema Gatshel was classified as an “Urban Centre Without Plan” a few years ago. However, the town officially moved to Denchi in March 2023. Around 80 Thram holders of Bartseri and Shumar Chiwog in Shumar Gewog fall under the “Urban Center Without Plan” classification.
According to Bhutan National Land Use Zoning Baseline Report 2023, while the exact phrase ‘Urban centre Without Plan’ is not used, the concept is addressed under the category of ‘Prospective Towns & Urban Area’. It refers to towns and urban areas where human settlement plans have yet to be implemented.
Despite the local gewog informing relevant sectors about the town relocation to Denchi last year, no changes have been made in the land tax classification and property taxes have remained the same.
“Land near the old Pema Gatshel town is still classified as an ‘Urban Center Without Plan,’ but all the infrastructure and administrative functions have moved to Denchi. It is unfair, and I raised this issue verbally during the 2023 tax collection season as well,” said Sonam Dendup, Shumar Gup.
Currently, the price of land in the “Urban Centre Without Plan” area is approximately Nu 24,400 per decimal, according to the Property Assessment and Valuation Agency or PAVA. The property tax rate is about Nu 2,440 per decimal.
“With the township now officially relocated to Denchi, we have decided to write to the relevant agencies requesting a change in the land classification near the old Pema Gatshel town,” said Pema Dorji, DT Chairperson, Pema Gatshel.
The members are hopeful that changes will be implemented by the next property tax collection.
Thinley Dorji, Pema Gatshel
Edited by Sonam Pem
