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Tax and rising costs put pressure on public bus services

January 1, 2026
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Concerns over road safety, rising operational costs, and the quality of public transport were some issues raised during a meeting between bus operators and the infrastructure and transport ministry, yesterday. The meeting was held following four bus accident cases in the last two months. However, none resulted in casualties.

The minister of infrastructure and transport said that ensuring road safety is a shared responsibility.

He said a safe and reliable transport system in the country is crucial to avoid losing lives on the roads.

Currently, there are more than 300 registered passenger buses in the country.

Chandra Bahadur Gurung, Infrastructure and Transport Minister said, “It serves as a reminder about responsibility and accountability. When I say this, it doesn’t mean that bus operators are the only responsible and accountable. It was also to discuss their inconveniences and let us know what kind of support are required from the ministry, BCTA and officials in field and from themselves and the drivers.”

Bus operators raised concerns over rising costs due to implementation of the Goods and Services Tax, citing a five per cent increase in fuel prices.

They also said that there is need for green tax exemption for passenger buses, which could help them invest in higher quality buses.

Poor road conditions, especially after landslides and roadblocks, were cited as another risk factor for accidents.

Karma Nidup, the CEO of Meto Transport said, “Initially, we could operate with Toyota coaster buses as the price of the bus was fair. Today, as the buses are upgraded to Euro VI from Euro IV, the price of the buses has also increased to almost 7 million from around 4 million in the past. All operators cannot buy those buses.”

Yeshi Chogyel, the CEO of Norphel Transport said, “From today, when we refuel, a five per cent tax is imposed on fuel. When we refuel for Nu 100, Nu 5 gets deducted. We raised this matter in today’s meeting. The officials say they will review on increasing the bus fare after submitting a proposal to the government.”

Pema Dorji, the owner of Ngawang Dorji Transport and Pema Namgyal Transport said, “The previous bus owner got the tax exemption because his intention was to serve the public. Even when I bought the bus from him, my intention was not of my own profit but to serve people. For that reason, I don’t feel that I was liable for the tax I paid during ownership transfer.”

The ministry acknowledged the concerns and said it would study proposals from the operators and review all issues including GST, green tax, bus quality, and road conditions, with the aim of improving public transport safety and efficiency nationwide.

The infrastructure and transport minister plans to hold a separate meeting with the passenger bus drivers to discuss their issues in the coming days.

Kelzang Chhophyel

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