The Bhutanese Leading the way.
Over the course of slightly over a week, over 20 applications have been filed for the reimbursement of overpaid property taxes, primarily stemming from outdated Proportionate Land Rights (PLR) records.
The joint owners were responsible for updating their own PLR and subsequently paying their respective shares of the property tax. Those whose PLR details were not accurately recorded in the Thram were required to visit the land sector offices to rectify the issue before proceeding with online payment.
However, the Department of Revenue and Customs (DRC) office has seen a noticeable increase in the number of applications for refunds of these payments.
As per an official from the Thromde, taxpayers were not informed by the Thromde to update their PLR, leading to a situation where the majority of people ended up overpaying.
The main issues primarily affect flat owners who inadvertently paid excess taxes on the land portion due to lack of awareness about the PLR update.
Prior to the introduction of the property tax system, the Thromde used to collect taxes for land, buildings, and flats altogether.
According to an official from the DRC, “The reimbursement process for those who have overpaid will require some time, as we need to submit the applications to the upper division for review before refunds can be issued.”
Following the introduction of the new system, technical glitches arose, causing delays in tax payments. Initially, the taxation span was scheduled for a three-month period from January to March, which was subsequently extended by one month due to these challenges.
The issues persisted, leaving thousands of taxpayers facing the same problem, resulting in an extension of the deadline until the 30th of this month.
DRC introduced the Property Tax System (PTS) in January 2024. Taxpayers were directed to register via the National Digital Identity (NDI) App to gain access to the PTS. As per information available on the DRC website, 163,910 taxpayers have successfully settled their property tax obligations, leaving 35,890 property owners yet to complete their payments last week.
