Blocked and overflowing drains, potholes filled with rainwater to deceive motorists and sewage water overflowing to block an entire stretch of the expressway are reminders of the state of the capital city’s infrastructure. Thimphu is expanding, but the infrastructure is not keeping up with the pace.

There are expectations. And those who own property or land are watching. This is because the government revised the property tax and revenue from taxes increased after the introduction of the value-based property tax. Many in the capital city and the periphery had paid through the noses. Revenue from property taxes increased by more than 900 percent.  In absolute figures, the increase in revenue was recorded at Nu 616.94 million in 2023 compared with Nu 60.97 million the previous year. The increase was by about Nu 555.97 million.

Not many complained when the taxes were raised. They agreed with the reasoning that revenue from taxes would be ploughed back to improve services. Particularly in the urban areas where property owners saw tax increase by 300 percent or more, the expectation was that public services would improve.

Earlier this week, when a sewage line burst on the expressway with sewage water overflowing all over, many were questioning why the thromde was not able to find a permanent solution. Every year the sewage line in the same area bursts causing inconveniences. The question on many mind is the Thimphu thromde not richer after the tax revision?

The reality is that the Thromde is as poor as in the past. Without money, the thromde or thrompon cannot do anything. The little the thromde raises in fees and charges is not enough for the upkeep of the city. This is the same in all the thromdes. If thrompons were to live up to the expectations of the voters or improve the thromdes, they need money.

The increased revenue from revised property taxes goes to the government revenue account to ensure equitable distribution of resources. Unfortunately, the improved revenue from taxes will not go to the thromdes where voters (property owners or registered residents) live and pay taxes. But when taxpayers feel the brunt of revised tax and witness no changes in services, they will question why revenue raised from taxes, fees and charges should not remain with the thromdes. 

The logic is that a thromde with revenue could plough it back to improve public services. After decades of planning, the capital city is grappling with the same issues. Residents are complaining of basic things. There is not enough drinking water, our roads are congested and pothole-ridden. Garbage and sanitation is a problem, so is housing and many other basic things.

It has only been one tax year since the revision. The public is expecting and the thromde’s excuse of “lack of budget” will not be a good excuse hereafter. Has the parking space problem improved?  Are our roads smoother or wider? Has drinking water become reliable? The problems are as old as the thromde. The public will pressure the thromde. Thormdes should demand for more funds to keep up with the expectations. In our case, the expectations are basic services and infrastructure.