The sale of vehicle quotas, often advertised on various social media forums, is not permitted by law. The Ministry of Finance is aware of such practices taking place in the market including online social media. However, the ministry said that it is impossible to prove that the actual sale of quota has taken place.
An official at the ministry said, “Selling of quota in social media cannot be taken as a complete proof of the deal. There are no documentations, like sale deeds, which proves that the transaction has actually taken place,” adding that as per the vehicle registration document (‘blue book’) issued by RSTA, the ownership of the vehicle is still in the name of the quota holders, which also does not prove that the sale has taken place.
“In light of these difficulties, the ministry is unable to monitor or control the supposedly transaction,” official added.
As per the Vehicle Quota Rules 2014, the Clause 10 states that the vehicle quota allotment shall not be misused, including sale to third party.
“Quota holders are aware of the rules,” the official said, and further added that while applying for the quota, the applicant signs an agreement which states that selling to third party is not permitted.
Official also said that transferring of the vehicles without paying customs duty, taxes, fees and charges is not permitted by law.
According to the Sales Tax, Customs and Excise Act of the Kingdom of Bhutan 2000, sale or transfer of vehicles imported under exempt basis by persons shall be liable to pay customs duty, taxes, fees and charges. (Section 33.1, Chapter 10 of Part II-Customs).
As per the penalties, the official said that a person should not be eligible for any future quota allotment and shall be liable to pay the applicable sales tax and customs duty on the original CIF value of the vehicle imported against the quota as per the Vehicle Quota Rules 2014.
However, as per Section 33.4, “no Customs Duty shall be levied if a vehicle imported under exempt basis is sold or transferred after 5 years of its registration in Bhutan”.
“The Ministry of Finance would like to reiterate to quota applicants/holders that the sale of quota is illegal and the actions shall be taken as per the Vehicle Quota Rules 2014 if proven,” the official said.