Thukten Zangpo
Local government (LG) leaders expressed concerns regarding the issues related to property tax and lack of human resources, among others, during a co-ordination meeting with the finance ministry on 13th Plan implementation in Thimphu yesterday.
Punakha’s Shengana gup, Samten Phuntsho, questioned whether taxpayers would receive refunds for households and structures like cowsheds and greenhouses included in satellite housing assessments.
He said that taxpayers had completed the form as instructed by the government.
In continuation to the argument, Punakha’s Guma gup, Kinley Gyeltshen, and Chukha’s Geling gup, Kinley Dorji, said that those paying the cattle tax received refunds.
Inconsistencies between the CID number and thram holders’ names were also raised.
Finance Minister Lekey Dorji acknowledged the inconveniences caused by the property tax system in its first year, stating that most issues were being resolved.
He assured that the revamped IT system would address remaining problems in the following year and that merging community service centres with gewog centres would also alleviate difficulties.
Lyonpo said that those who had paid taxes would receive refunds and that the government was planning to exempt the cattle tax. The director general of the Department of Revenue and Customs, Sonam Jamtsho, said that the revised progressive property tax system was aimed at ensuring equity and fairness.
He attributed the initial data backlogs in rural areas to human resource constraints, in contrast to the thorough survey conducted in town areas.
Sonam Jamtsho said that the government used satellite imagery to include cowsheds, garages, and greenhouses under the building category for taxation purposes.
He added that pending thrams were taxed using generated random numbers, and the department resolved issues related to proportionate land rights among multiple owners.
The revised property tax generated revenue of Nu 650 million in the income year 2023 and Nu 61.8 million from the 3 percent property transfer tax.
A gup also highlighted the human resources shortages in the local government operations and sought government intervention through policy changes and incentives to motivate civil servants.
Lyonpo Lekey Dorji said that the issue of lack of human resources was felt in all ministries and agencies.
He added that the government is planning to provide more salary and incentives to the functional group of civil servants and also outsource some work to the private sector.
The gups also raised issues related to the performance-based block grant. The officials from the finance ministry responded that it is required as part of the performance evaluation.
The discussion also highlighted the fiscal deficit of Nu 55.94 billion in the 13th Plan, and urged the government to come up with a proper policy and market. The local government leaders assured to scale up agriculture production.
Local Governments have been allocated Nu 72 billion for the 13th Plan from the total budget outlay of Nu 512 billion.
A week-long workshop to strengthen co-ordination between central agencies and LGs for the effective implementation of the 13th Plan began yesterday.
Twenty dzongdags, fours thrompons, executive secretaries of the four thromdes, 205 gups, thuemis of dzongkhag throms, and planning officers from dzongkhag and thromdes are attending the workshop with relevant ministries and agencies.