The National Council members while deliberating the Tax Bill 2014 said the tax measures proposed by the government will affect the low income groups the most. Most of the members did not support the proposed tax as it is too high.
The members said zero tax on electric vehicles and high tax on other vehicles is not fair. They said, the purpose of levying tax is to reduce the number of vehicles in the country, reduce the outflow of rupee and convertible currency and to conserve the environment. The members said the tax measures, however, contradict the objectives.
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The members added that it would only force people to buy electric car. They said feasibility of electric car in Bhutan is a big question. Therefore, the members didn’t support the 5 percent tax proposal on fuel.
The members said the government’s pay revision will also not serve its purpose as the proposed tax measures will only contribute to inflation, hitting the lower income group.
