The Bhutanese Leading the way.
The process of refunding excess Green Tax has been underway, with car dealers refunding the customers before the deadline approaches. However, several issues have emerged, leading to customer frustration and confusion.
Customer complaints and frustrations
Despite the structured refund process, some customers remain dissatisfied. One customer who bought a car from Bhutan Hyundai Motors in 2021 claimed that he and other customers have not received any refund, and they have been unable to contact the dealership, as their calls go unanswered.
Bhutan Hyundai Motors did not comply in answering the questions raised by the customers.
Another customer expressed frustration over receiving a refund as low as Nu 40. “We go to the office only to find that we are eligible for such a small amount,” she said.
Phuntsho, another vehicle owner, stated that she bought an Isuzu Hilux in 2019 but is still not eligible for a refund. She attempted to contact Isuzu Motors for clarification but has not received any response.
Refund process and dealer statements
State Trading Corporation of Bhutan (STCBL) said that so far, the corporation has refunded some private customers, but the majority of them have not shown up. The corporation received a letter from the Ministry of Finance stating that they should deposit the refunded amount for the government agencies to the ministry’s account. They had refunded two public companies before that.
As of 14th February, STCBL refunded around Nu 6 million, out of which 3 million was refunded to 110 government vehicles and 3 million to 175 private vehicles. They said that some customers are not coming to collect the excess since it is below Nu 1.
One car dealer explained that the excess Green Tax for government vehicles is refunded directly through the Regional Revenue and Customs Office (RRCO), while private vehicle owners must visit the dealership to collect their refund cheques. Customers must sign an acknowledgment letter in the RRCO-approved format. If the original buyer is unavailable—such as those living abroad or in different dzongkhags—a family member or acquaintance can collect the cheque with an undertaking letter.
So far, over 100 customers have received their refunds. However, the dealer noted that some customers demand a full refund of their Green Tax instead of just the excess amount. The confusion partly arises due to rounding up of the tax amounts. For example, if a car has a 35% Green Tax applied, the final amount may be rounded up—for instance, Nu 148,000 rounded to Nu 150,000. Customers in such cases are only eligible for a refund of the excess Nu 2,000, not the full tax amount.
The dealer also highlighted cases where vehicles have changed ownership multiple times. Both the current quota holder and the original buyer sometimes attempt to claim the refund, but only the original buyer is eligible.
A second car dealer stated that their refund process is ongoing and will be completed before the deadline.
A third car dealer reported handling about 20 customers per day. Some customers arrive without the necessary documents, such as their ID card or bluebook, while others have updated their bluebooks, leading to confusion. RRCO determines refund eligibility based on a verified list provided to dealers. As a result, not all customers who believe they are eligible can receive a refund. Some farmers from eastern Bhutan, such as Trashigang, have traveled long distances only to find that they are not on the list. Dealers have stressed that RRCO thoroughly investigated cases before compiling the final refund list.
