While introducing the Cattle Tax Exemption Bill in the National Council (NC) today, the finance minister who is the member in charge of the bill was met with criticism from some council members. They said the government should have prioritised tabling the property and vehicle taxes over the Cattle Tax Exemption Bill. The National Assembly adopted the bill Tuesday.
The National Council members questioned the finance minister on why the government prioritised tabling the cattle tax saying the amount collected is minimal.
They said the government should have focused more on deliberating on more urgent issues pertaining to property and vehicle taxes.
“The cattle tax is very minimal and taxpayers have no issues paying the amount. The government should prioritise urgent matters such as property and vehicle taxes. Why were these issues not included in the parliament’s order of business?” said Pema Tashi, MP, Sarpang.
Trashigang’s MP Sonam Tobgyel said, “If the cattle tax does not benefit the government, should it be done away with? Should taxes be imposed only if they benefit the government? There are no significant problems in rural areas with property tax payments either. So, if the property tax remains, why do away with the cattle tax? What is the objective behind it?”
Zhemgang’s MP Tshering Tshomo said, “Once this bill is adopted and implemented, what is the projected increase in cattle population and household incomes? And to what extent will dairy production improve?”
The finance minister reiterated that the tax is being removed to support livestock farmers and highlanders and to reduce the import of dairy products.
“Regarding the property tax, the rates have increased compared to the previous years. However, the tax applies only to those who own land and buildings. If you do not own property, you do not have to pay any tax.”
However, members also supported the cattle tax exemption citing its potential benefits for livestock farmers.
“The tax exemption will be beneficial for highlanders. Many of them rely on livestock rearing, and due to climate change, they are struggling. For those owning over one hundred cattle, even a tax of five ngultrum per animal is a lot for them,” said Bumthang’s MP Kencho Tshering.
The House will continue deliberation on the Bill tomorrow.
Deki Lhazom
Edited by Phub Gyem
