The Opposition Party is urging the government to recalibrate and reassess the country’s tax policies. The party says this is to address public outcry over high vehicle prices since lifting of moratorium. Vehicle prices soared significantly with the implementation of 2022 tax revisions. According to the Opposition Party, the government needs to reform tax and fiscal policies relevant to the country’s current economic situation.
Opposition Party says they decided to suggest the government to reform tax and fiscal policies as a way forward after finding out that the increase in prices of vehicles is mostly due to the upward revision of the tax, customs duty and green tax.
The Opposition Party’s notification states that the vehicle moratorium was lifted in view of the improved foreign currency reserve and economic conditions.
According to the party, the previous government revised the taxes when the country’s economy was not performing well.
It is now recommending the government rectify and form new tax policies by evaluating the 2022 tax revision, and to update fiscal policies by engaging relevant stakeholders.
Loday Tsheten, Gangzur-Minjey MP from Lhuentse said “we are currently in a better economic situation, and conditions have changed. We are asking the government to reassess the economic situation and recalibrate fiscal policy accordingly. Additionally, we urge the government to discuss these changes with all stakeholders so that people understand the reasons behind the fiscal policy and how it needs to adapt to the country’s evolving economic conditions.”
He added that the government needs to start ground works for tax reforms to be tabled in the parliament later this year.
“The reason behind the price increase is the upward revision of taxes. The government cannot decide on tax policies tomorrow and implement them the day after; they must go through the parliamentary process. Our advice is to conduct a thorough study and table this issue in the winter session.”
The previous government revised the country’s taxation system in 2022 to address growing trade deficit and dwindling foreign currency reserves, promote public health and environmental sustainability and to foster and support local industries in the country.
Meanwhile, the government has formed a committee to investigate the recent surge in vehicle prices following the lifting of the vehicle import moratorium.
Tashi Dekar & Dechen Choden
Edited by Phub Gyem
