KP Sharma   

Finance minister Lekey Dorji, opposed the reinstatement of the old vehicle quota system, citing concerns about skewed vehicle imports and government commitments to fiscal discipline during the Meet-the-Press yesterday.

Lyonpo said that the 2022 Pay Structure Reform Act 2022 aimed to create more equitable salary structure and reduce disparities in salary and allowances, removing duty-free for all. One of the key objectives was to rectify skewed vehicle market, he added.

“In the right frame of mind, we cannot recommend reinstating the quota system for anybody,” Lyonpo said, adding that the ministry has a duty to safeguard economy and treasury.

“The government will have to review and make an informed decision, and report to the House,” Lyonpo said.

The National Assembly recently passed a motion to amend the 2022 Pay Structure Reform Act. The government is now tasked with conducting a comprehensive review of the Act during the upcoming summer session of Parliament.

Lyonpo explained that the  vehicle quota system was introduced in the 1980s to facilitate vehicle imports for public servants in an era of limited public transportation options.

However, the current context demands a different approach.

At that time, the primary goal was to facilitate vehicle imports for public servants, reducing reliance on limited government vehicles. In addition, the quota system aimed to ease the mobility of public servants during official duties and standardise foreign vehicle imports.

In the earlier quota system, the civil servants and public servants in P3 level and above were entitled for a vehicle quota, free of customs duty and sales tax exempted up to a ceiling of Nu 800,000 after every seven years of import. Currently, only few public servants including local government officials were entitled.

Similarly, the Members of the Parliament were entitled for a one-time quota free of customs duty and sales tax exempted up to a ceiling of 3,000cc per term. To facilitate mobility of MPs, who do not receive designated vehicles, a vehicle quota with a lumpsum allowance of Nu 1 million per term is provided.

Health Minister Tandin Wangchuk acknowledged that the MPs’ concerns but explained that the government cannot immediately revise the Pay Structure Reforms Act 2022. He said that the parliamentary decisions are made by the majority vote.

The Parliamentary Entitlements (Amendment) Bill 2024, which includes provisions for MPs’ vehicle quotas and other benefits, has been deferred to the summer session of next year to ensure comprehensive consultations and development of a consistent legislative framework.