According to the Finance Ministry, the deadline for qualified public employees to comply with the vehicle import quota regulations has been extended to June 30 of this year. The ministry announced on February 24 that the automobile import quota regulations had been modified for in-service public employees who were eligible for a quota as of June 30, 2023, but had not claimed it by June 30, 2024, in accordance with Section 63 of the Pay Structure Reform Act of Bhutan 2022. It further stated that the deadline for claiming the car import quota has been extended to June 30, 2025, and that vehicles valued at no more than Nu 0.8 million per quota are exempt from sales tax and customs duties.
According to the ministry, the quota will be forfeited if it is not claimed within this extended time frame. These are valid for seven years after the date of issuance for both active and retired public officials who have already claimed their quotas. Since the National Assembly just approved the GST and excise tax, all automobiles imported after January 1, 2026, would be subject to the 5% GST rate. India and Thailand’s Free Trade Agreement will eliminate customs duties on imported vehicles, replacing the green tax with an excise tax ranging from 5 percent to 90%.