After graduation, most individuals either enter public service or join the private sector, and many share a common dream: owning a car. They do not aspire for luxury vehicles but simply seek an affordable means of transportation. For many, a car has become a necessity; driven by various pressures—peer, social, and otherwise. The vehicle moratorium provided temporary relief from these pressures, causing their dreams to go dormant. However, with the moratorium lifted, the reality of the situation has resurfaced, leading to disappointment. The cost of the cheapest car, an ALTO K10, is Nu 772,079 without a quota, a price many cannot afford. With a quota, the same car would cost Nu 543,594, but most people described above do not have access to this benefit.
As a result, many in Thimphu must rely on city buses or taxis for their daily commute. While this issue may seem minor on the surface, it has significant psychological ramifications. The sight of more fortunate classmates driving to work can intensify feelings of inadequacy, especially when they are repeatedly asked, “Don’t you still have a car?” This frustration has even driven some Bhutanese to leave their jobs and migrate to countries like Australia. “I’m leaving. After five years in the civil service, I still can’t afford a small car.” Many of us have heard this sentiment expressed.
From both social and psychological perspectives, many Bhutanese have grown up witnessing others possess things they cannot afford, such as a car. This experience often leads to prioritizing certain goals, like owning a car or a home, from a young age. For some, these goals become all-consuming, and could lead to unethical behavior, such as engaging in corruption, to achieve them.
The situation is even more challenging for those living in districts without city buses, where taxi fares are exorbitant.
The rising cost of vehicles is not the fault of distributors; it is due to increased rates in India, Green Tax, and BST, which adds Nu 228,484.80 to the price of an ALTO K10. Those who can afford to pay such taxes are unlikely to buy an ALTO; they will opt for an SUV instead.
This is not to say that taxes should not be paid, but they should be progressive and rational. For example, a DZIRE ZX1+ATM’s net selling price is Nu 1,272,053, with a BST tax of Nu 373,944.06. With a quota, the net selling price drops to Nu 912,035. Similarly, a BREEZA VXI’s net selling price is Nu 1,026,744, with a tax of Nu 302,705.55, and the price with a quota is Nu 724,099. Quota holders typically buy these or even more expensive cars.
The government is rightly concerned about the number of cars entering Bhutan, especially Thimphu. There are ways to control or reduce this influx, such as removing vehicles that have celebrated their silver jubilees, such as Land Cruisers that have been repainted multiple times and others.
In terms of taxation, those who can afford it should pay higher taxes, particularly households with five to ten vehicles that continue to import more.
This article is not about “misplaced compassion.” It is about encouraging and inspiring the future citizens of our country, showing them that the state cares about their well-being. It is about helping them achieve their dreams, promoting equity, and practicing Gross National Happiness (GNH).
