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MP dissatisfied with Finance Minister over refusal to amend land tax concessions and valuation discrepancies

June 4, 2025
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Most members of the parliament expressed dissatisfaction with the government’s resolutions on the amendments in the Property Tax Act of Bhutan 2022. The Finance Minister informed the National Assembly that provisions regarding the valuation and tax concessions on wetland and dryland will not be rectified.  During the last session, the house had recommended that the finance ministry look into the discrepancies in land valuation and provide fairer tax concessions.

Under the Property Tax Act of Bhutan 2022, Wetland (Chhuzhing) gets a 90 per cent concession, while dryland (Kamzhing) gets only a 50 per cent.

According to Members of the Parliament, this disparity is unfair to land owners. They say offering a uniform 90 per cent concession would encourage farmers to cultivate dryland as well.

Radhi-Sakteng MP Tashi Tenzin said, “The amendment will bring fairness to dryland farmers. A 90 per cent reduction in dryland tax will not only motivate them but also create greater opportunities. It’s time we adopt this new perspective, one that prioritises empowering and supporting our farmers.”

Gangzur-Minjey MP Loday Tsheten said, “If this kind of inequality and injustice continue, where people are taxed differently, I fear it could lead to more serious problems over time.”

The MPs also pointed out irregularities in valuation. Land is currently valued based on its proximity to towns, which does not accurately reflect the real travel distances, leading to unfair valuations in some areas.

Moreover, MPs say some landowners are still being taxed on land surrendered for farm roads, which are not updated in land records.

Opposition Leader Pema Chewang said, “The National Land Commission is ready to update land records and carry out the necessary work. However, they are facing budget limitations, which have delayed progress. I believe the government must provide them with the financial support needed to move forward.”

With a majority of MPs voicing dissatisfaction, the Speaker directed the government to revisit the issue once again and submit a detailed report during the winter session.

Sonam Yuden & Tashi Dekar

Edited by Sangay Chezom

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