Motion to Amend Sections 19 and 20 of the Property Tax Act of Bhutan 2022 is moved
On November 29, 2024, the Member from Gangzur-Minjey constituency moved a motion to amend Sections 19 and 20 of the Property Tax Act of Bhutan 2022. The motion highlights several issues arising from the implementation of the Act in early 2024.
Key concerns include the unequal concessions of 90% for Chhuzing and 50% for Kamzhing, which do not align with the principles of fairness due to varying land holdings. Additionally, the current land classification method, based on horizontal distance from municipal boundaries, fails to accurately reflect the true value of land, distorting equity.
The motion recommends for consideration of equal concessions for both land types, a reevaluation of land classification methods, and adjustments to land holdings to exempt portions contributed for community purposes from taxation. These changes aim to enhance the fairness of the property taxation system and support national food security.
During deliberations, the Minister for Agriculture and Livestock (MoAL) highlighted that Sections 19 and 20 of the Property Tax Act of Bhutan 2022 aim to boost agricultural production and improve food security. These provisions were introduced to encourage farming, as production levels had decreased compared to previous years. The Minister also supported reconsidering land taxation. Additionally, a high-level committee, formed under the National Land Commission, is considering addressing issues such as land classification, ground truthing, and taxation concerns in both Thromde and rural areas. The Finance Minister confirmed that the committee, approved by the Lhengye Zhungtshog, is also tasked to examine issues related to Chhuzing, Kamzhing, and the PAVA rate.
The House, with show of hands and majority support, endorsed the motion and directed the government to present a report on the progress made by the high-level Committee and provide updates on the work carried out by the concerned ministries on the issues raised in the summer session. The recommendations of the motion will be referred to the National Land Commission through the Ministry of Agriculture and Livestock.
