Agency: In response to the recent overcharging of green tax by the 11 car dealers, the Department of Revenue and Customs (DRC) issued a public notice stating that the dealers should refund their customers within 15th February, 2025. The Minister of Finance, Lyonpo Lekey Dorji stated that if the refund is not made within the given deadline, the DRC will invoke the penal provisions as per the relevant Tax Act and enforce them without fear or favour.
Following the lifting of the vehicle import moratorium, a surge in vehicle purchases led to widespread dissatisfaction among the public due to escalating prices. Many people pointed to high taxes as the primary reason for the price increases. In response, the government tasked the DRC with reviewing vehicle pricing structures to identify the factors contributing to the price hikes.
The DRC conducted an in-depth analysis, examining import declarations, manufacturer invoices (submitted at entry), and dealer sales invoices. The investigation revealed a significant inconsistency in the application of Green Tax. Specifically, the GT recorded in import declarations was much lower than the GT charged to customers in dealer invoices.