Finally Dismantled After Nearly Half A Century!

As I had said in few of my earlier posts on this blog, achieving greatness does not have to be always about accomplishing great things - it is also about having the courage to dismantle great evil - such as the shameful state-sponsored corruption called Vehicle Quota Entitlement that has enticed a great number of public employees to tread on the path of immorality and depravity.

The first time I brought up the subject of the evil on this blog that was the vehicle quota system, was on June 16, 2011. I have been ranting ceaselessly ever since. Finally it looks like the DNT government is burying it. I offer them my CONGRATULATIONS. Unfortunately I cannot say that it is a gutsy thing that they have done - that would not be true. Doing the right thing is not gutsy or courageous - it is a duty, a responsibility that comes with the job. But the DNT government has the distinction of being the only government that has acted, as a responsible government should. Not a single government before them had the moral probity to do what was expected of them.

It beats all logic that this immoral thing has gone on for close to half a century - it surely is telling on the morality and uprightness of the so called “unique” Bhutanese people. I absolutely refuse to buy the claim that there were smart and upright citizens in positions of power and authority in the past, or that they are still around, to run and direct the course of the country on the right path. If there were, we would not have inherited a million problems that our King is now fighting a lone battle to sort out.

But now that it is done and dusted with, I do not want to speak about it any more.

When speaking on the Pay Structure Reform Bill on the floor of the National Assembly, Finance Minister Namgay Tshering was on record saying: “there is no clear set objectives on why the vehicle quota system was initiated.”

His Excellency Namgay Tshering was not even born when the vehicle quota system came into being. By contrast, I became entitled to it, the year he was born. Thus, it is understandable that he would not have a context on the matter. Perhaps, one day, I could offer him a rationalization on why I believe vehicle quota system was necessitated, that its introduction DID serve an objective. I believe that it was never about a reward to some select group of people, as perceived.

I believe that it was dictated to circumvent certain situational compulsions that prevailed during the era when the quota system had to be conjured up.

Will Someone Rise and Dismantle the Evil

Every corner you turn, the topic that is currently in vogue is the transformation exercise that is ongoing. It has been long overdue. No doubt the process will cause some misery but the sum total of the initiative should amount to progress and ease of doing things over the long haul. But I hope that the transformation is not “Cock-Eyed”. Cock-Eyed is defined as:

Looking East but seeing West

Happily for me the Kuensel has been unfailing in their reporting on the depleting foreign currency reserve situation - a subject that worries me greatly. Unfortunately the RMA is silent on the issue. The Finance Minister did make a limpid mention on the matter. The Prime Minister did better by cautioning the nation that the foreign currency reserve will run out soon, if things do not improve.

Unfailing and responsible reporting by the Kuensel on the matter concerning the worrisome issue of the country's falling foreign currency reserve

The biggest drain on the foreign exchange reserve is caused by the unchecked, black-market bound vehicles imported under the vehicle quota entitlement, and the import of non-essential goods. As far back as January 28 of 2020, in a blog article titled “Gross National Hypocrisy: How the vehicle quota hurts Bhutan”, I wrote as follows:

According to the RSTA Bhutan’s total vehicle population at the end of December, 2019 stood at 106,681. Of this, 55,801 are in Thimphu – which is more than 50% of the national total. Considering that Thimphu has a human population of 115,000 persons, this translates into 1 vehicle for every 2 persons in Thimphu.

Recently it was discovered that 70% children between 1-4 years tested in Thimphu had EBLLs (Elevated Blood Lead Levels). This is extremely, dangerously high. There is an effort underway to determine the source of this poisoning. But there is paucity of funds to take the study forward.

You can read about my thoughts on the subject at the following:

https://yesheydorji.blogspot.com/search?q=Vehicle+Quota

The following is how the World Bank's economist, Dr. Martin Rama, euphemistically worded his worry about Bhutan’s duty exemptions and tax holidays:

 “…… the decline in tax revenue in relation to GDP is not due to a change in tax instruments or in tax rates, but because of policy decisions of tax holidays and exemptions. Sales Tax exemptions result in 50 percent of foregone revenue. Further around 63 percent of all imported commodities are exempted from Custom Duties.”

“Instead of losing the tax revenue to exemptions that are not rational, management of taxation could also play a vital role in attaining fiscal self-sufficiency.”

On September 18, 2009, our Ex-Prime Minister Tshering Tobgay, in his capacity as the Opposition Leader, wrote as follows:

“……… But I wonder if our government has thought about the most obvious way to control traffic congestion: scrap the import quota system. Import quotas, which are given only to public servants, are directly responsible for the growth in vehicle numbers. Every quota is used. And, it’s common knowledge that, many times, the quotas are sold, illegally, to private individuals.”

His full blog article can be accessed at:

https://tsheringtobgay.com/government/2009/taxing-cars.html

Will someone finally show some courage and dismantle this evil, now that transformation is happening and that the country is all poised for disaster?

As I have recently said during the proceedings of the 50th Bhutan Dialogues, greatness is not necessarily achieved because you have done great things – it is also because you had the courage to dismantle great evil.

Misconception About Vehicle Quota

I just read today’s Kuensel article on vehicle quota. It is so sad ….. clearly some of our lawmakers seem absolutely clueless about the reason behind the award of vehicle quota. Some have even gone to the extent of saying that the quota is given to public employees for long years of dedicated service to the Tsawa Sum. I do not intend to contest this claim - after all we all know the truth.

My endeavor with this post is to inform the misinformed lawmakers.

The Honorable MP’s and NC’s should know that the vehicle quota is NOT given for long and dedicated service. It is given for attaining a certain position - irrespective of whether one has put in long years of service, or whether one has been dedicated or hard working, or merely shamming all one’s life. Integrity, service and dedication are not prerequisite, to be entitled to vehicle quota. I know of public employees who did not know how to execute a print command on the computer keyboard - and yet he got his vehicle quota.

Frankly, let us forget this line of argument - lets get down to brass tacks.

The elected MP’s and NC’s do not need to put in a day’s work in the service of the Tsa Wa Sum, and yet they are entitled to vehicle quota. So then, tell me, is vehicle quota really given to people with long and dedicated service to the Tsa Wa Sum?

The Declining Bhutanese Probity

This will be my 13th article on the reprehensible vehicle quota issue. Perhaps this will be my last – or there will be more, depending on how the issue pans out over time. But while doing the 12th article, there was a moment of awakening which made be feel so terribly sad.

I became eligible for a vehicle quota in 1979. But I had no money to be able to afford a car. Five years later, in 1984 I gathered up my courage and approached my late uncle to give me a loan so that I could buy a Toyota Corona Sedan, the price of which was then Nu.68,000.00 c.i.f Phuentsholing. I needed Nu.34,000.00 as down payment - the balance 50% of the cost would be financed by the Bank of Bhutan. My uncle did not believe that I was in any condition to repay the loan - so he did what a loving uncle does for his most favorite nephew - he said that I could have the money - FREE!

Four days later I went to the STCB to make my down payment, only to be told that the price of the car had gone up by Nu.4,000.00, which meant that my portion of the down payment would now work out to Nu.36,000.00. I was short of Nu.2,000.00, which money I did not have. Thus ended my dream to ever own a car bought on quota.

What struck me was that those days we never dreamed of selling our vehicle quota. Where the people of that era more principled? Where we more law-abiding than those of the present lot? Is the present generation poorer than those of us those days, that they need to supplement their income by selling vehicle quota illegally in the black market?

Has the quality of Bhutanese people been dropping with the passage of time? If this is true, then I would be right in saying that it is not the quality of education that has dropped – it is the quality of students that has dropped. The quality of students has dropped because of the drop in the quality of people (parents), resulting in poor quality of parenting.

What is with human race? Even as we say we are making progress, we suffer decline – in morality, discipline, integrity, value, sense of duty, patriotism, quality of life, spirit of volunteerism, and sense of charity.

That provably explains why, even as we make progress in medical sciences, we are overwhelmed with illnesses that boggle the mind.

Gross National Hypocrisy: How the Vehicle Quota Hurts Bhutan

I have spoken to a number of Cabinet Members; I have spoken to politicians of the ruling Governments and those in the Opposition. I have spoken to bureaucrats, and even to one Member of the Pay Commission, about the shameful corruption that is the vehicle quota, and the need to scrap it from our system. Nothing has come of it – mainly because all those with whom I pleaded benefit personally from its perpetuation, while the nation continues to be deprived of hundreds of millions in lost revenue, year after year. The only door that I have yet to knock is the door of God - I would, only if I knew where His dwelling is.

Every year we squander away hundreds of millions of Ngultrums through loss of revenue - caused by award of vehicle quota to people who have not earned it - money that could have been used to build schools, improve roads and provide safe drinking water, or acquire much needed medical equipment. Thus far, no one has shown courage and selflessness to do something right – all have chosen to allow a most vile evil to go on unchecked, because they all benefit from it.

Perhaps it is that people do not really understand how vile this vehicle quota is. Thus I volunteer to point out the following.

There are a number of players that must be listed – as those contributing to the perpetuation of the blatant corruption that is vehicle quota:

Royal Government of Bhutan

The Royal Government of Bhutan has to take the TOP slot. It is the government that is sponsoring this shameful corruption.

Members of the Pay Commission

I believe that the past 4 Pay Commission Members should rank in the second place. They were charged with the responsibility to examine/re-examine the validity of the public employees’ entitlements. All of them know of the loss of revenue this evil is causing to the country and yet they did not act – simply because the perpetuation of this evil means money into their pockets.

The Seller of the Quota

The quota was awarded so that the recipient could buy a vehicle at a cheaper price. It was not given because the recipient could sell it in the black market, for monetary gains. The seller is thus a law-breaker.

The Buyer of the Quota

The buyer is an even bigger criminal - because he/she buys the quota with the intension to cheat the country its just due. He/she is guilty on two counts - one for evading Import Duty, and another for collaborating in an illegal enterprise.

The most evil thing about this vehicle quota is that it has a multiplier effect:

Every quota doled out generates two vehicle imports. The quota seller sells his/her quota and with that money he/she buys a smaller car for himself/herself. The quota buyer buys another car. The net result of this is that the population of vehicles increase disproportionately. This causes traffic congestion and parking problems. Even worst, the increase in number of vehicles means that we need to import more fossil fuel. The import bill of fossil fuel is such that I suspect we import more energy than we export, effectively dismantling the myth that hydropower generation is a gainful enterprise.

According to the RSTA Bhutan’s total vehicle population at the end of December, 2019 stood at 106,681. Of this, 55,801 are in Thimphu – which is more than 50% of the national total. Considering that Thimphu has a human population of 115,000 persons, this translates into 1 vehicle for every 2 persons in Thimphu.

Now imagine the quality of air of Thimphu municipality. Particularly since Thimphu is in a narrow valley boxed in by high mountains, imagine the level of toxic particulates that remain trapped and suspended in the air - that which is inhaled by unsuspecting humans.

Imagine the quality of Thimphu’s Wangchhu – resulting from release and dumping of thousands of tons of harmful waste from vehicle workshops and car wash facilities.

Recently it was discovered that 70% children between 1-4 years tested in Thimphu had EBLLs (Elevated Blood Lead Levels). This is extremely, dangerously high. There is an effort underway to determine the source of this poisoning. But there is paucity of funds to take the study forward.

We could perhaps consider spending some of the savings from doing away with the vehicle quota - to buy testing equipment and supplies to undertake research to find out what is the source of EBLL. Consider that the damage caused by EBLLs is permanent!.

Narrowing The Gap – W I D E R!

Few nights back a number of us long time friends and acquaintances were gathered at a bar for a friendly session of drinking - some beer, some whiskey and one among us, plain hot water.

As the evening progressed, there began a vigorous discussion on a number of topics – both relevant as well as the utterly silly. Dehydrated conditions caused by the room heater combined with copious amounts of whiskey and beer, invariably lead us to loosen our tongues and emboldened us to speak on matters normally considered unseemly.

One member of the group asked:

“Wai, one of the campaign promises of the Druk Nyamrup Tshogpa (DNT) was that you would narrow the gap between the rich and the poor. What happened?”

One of the senior most members of the DNT who was present, interjected:

“Yes wai – we are certainly on the job. We are narrowing the gap – WIDER!”

That got us all guffawing. I mean it was incredible that such a senior member of the ruling party would say such a thing.

I asked the Member: “This is an incredibly honest admission – can I put it down in my Blog?”

He said; “Yes, please do by all means!”

The discussion on “narrowing the gap” took center stage because one of the group members that evening was on the phone with another political party member – negotiating a price for a vehicle quota – this time for a Toyota Prado. The price on offer for  the right to ownership and import of a duty free Prado was Nu.2.2 million. The speaker on the other end was asking for Nu.2.5 million. The deal couldn’t be concluded because they could not agree on the price for the quota. But it certainly opened up a vigorous discussion on the reprehensible practice of awarding vehicle quotas to some section of the Bhutanese society, and the shameless trading of the piece of paper with wanton abandon.

One can attain great fame by being able to achieve great things in life. But that is not the only route to attaining eminence - one can also do so by being able to have the courage to undo evil and injustice in society. Vehicle quota is one such unfair practice that causes immorality and breeds class segregation among equals.

I urge the incumbent government to have the courage to dismantle what you know is corruption among those who have been charged with the responsibility to be the custodians of morality and good practices.

You may never have that chance ever again. CARPE DIEM!

The Bhutanese Polity: In A State of Deep Moral Depravity

“Bhutan has one MP for 9,000 citizens. The margin between those who serve our country and the population they serve is very narrow. In many countries, elected representatives will never get to know all their people, even if they spend an entire lifetime trying to do so. We have one elected representative for 380 citizens, one public servant to look after the needs of 14 citizens. As I have said before, it is not a question of whether we can do something or not, whether we have enough or not, whether we are permitted or not. The question is, are we going to do it or not.”

His Majesty’s Address to the 11th Convocation of the RUB

7 June 2017

The people of Bhutan elected DPT to form the first democratically elected government, in 2008. Five years later, the people decided that they didn’t do their job – they threw them out and elected the PDP to lead the way by placing them on the seat of power and governance. But the first thing PDP did was to spend precious parliamentary time discussing pay revision and parliamentary entitlements. They proudly declared to the world that Bhutan is the world’s only “carbon negative” country. Paradoxically, Bhutan saw the highest registration of motor vehicles during their tenure. By contrast, it was the DPT government who banned the import of vehicles, effectively preventing the abuse of vehicle quotas, while curtailing fossil fuel imports.

During the latest round of elections, the people demonstrated that they were unhappy with the PDP as well. PDP’s defeat during the 2018 elections was decisive – they did not even make it through the Primary rounds. DNT was the people’s choice. For a moment I believed that this lot of young and eloquent speakers was a set of lawmakers after my own heart - I even said so in answer to an American friend’s question on my views on the new government.

I was wrong – they clearly outdid the past two do-gooders: the just concluded National Assembly saw them spend over two weeks talking of pay revision and parliamentary entitlements.

The din and the cacophony of their verbosity reverberated the hallowed halls of the National Assembly. The eloquence was palpable; the august hall resonated with impressive words spoken with fluency and without halt. The pomp and pageantry was impressive. But what did not escape our attention was this: it was all too evident that the words and the intent behind them served only one purpose – their self-interest. The Parliamentary proceedings completely silenced out the one question His Majesty asked pointedly during the 11^th Convocation of the RUB:

“The question is, are we going to do it or not.”

The question was completely ignored!

The 2^nd session of the 3^rd Parliament has come to an end. The lawmakers are now all set to submit the records of the proceedings and the resolutions thereof, to His Majesty the King, for His Royal assent, for their resolutions to come into effect as law. And this is where I believe that the Parliamentarians have failed in their responsibility to protect and preserve the sanctity and the inviolability of the Crown, which is the responsibility of every single Bhutanese.

My reasoning is simple: This lot of Parliamentarians – as did those others before them – will be submitting to the King for His Royal assent - something that they know very well will be misused and abused blatantly, as they have been done for the past many decades. The Parliamentarians will, collectively, be submitting to the King to accord His Royal assent – their resolution on the 4^th Pay Commission’s Pay Revision recommendations. These recommendations would contain an inconspicuous matter dealing with vehicle quota entitlement and/or encashment thereof.

Now, my question to the Parliamentarians is this: Are you being His loyal and trusted subjects in seeking his Royal assent, on something that you are certain will unfailingly be abused? Do you do it because you know that His Majesty would consider it inappropriate for Him to take away a kidu, even if awarded by those in whose domain it is not to grant undeserved kidu?

Frankly I believe that pay raise is the prerogative of the incumbent government – I have no issues with it – if the government feels that they have the wherewithal to pay Nu.100,000.00 to a junior clerk, they are welcome to it. But certainly awarding underserved kidu is outside their domain.

Award of quota to some, in preference over others, is in itself an act of segregation among equals. This should never happen in a society that prides itself as a thinking society. However, if the government must, they should do so with a bit of intelligence. What the DNT government has done is worst than what it already was. While glibly putting out the falsehood that they have rationalized the underserved quota entitlement, they have in fact aggravated the problem even further.

On the one hand, the monetized value of Nu.250,000.00 for the public servants is far more than what they were getting for their quota sold illegally in the open market. The fixation of monetization value of the MP’s and the Cabinet Ministers’ and others at Nu.1,500,000.00 seems to have been derived from its black market value that ruled in the last year.

The DNT’s recommendations on the vehicle quota are terribly flawed, in addition to being unfair and costly for the country. The following is how I see it:

If the civil servants and the MPs and the Ministers get more than the monetized value of their quota from the open market, they will go ahead and shamelessly sell their quota in the open market and make tidy sums of undeserved monetary benefit. However, if they do not get their asking price, which would be higher than the monetized value of their quota, they will do a quick turn around and offer to sell their quota to the government, at the monetized sum. The government has no choice but to buy the quota and pay the recipients the monetized value of the quota, as promised.

This transection is not only profane – but there is another immoral side to it: the government is in effect helping the unjustified quota recipients to turn ill-gotten gains into legitimate money, by enchasing the quota.

It is sad.

There are a select number of people on whom His Majesty placed His trust and faith. He has adorned them with Bura Marp and Patang and put them in positions of authority and responsibility. He has 5 eminent Members in the National Council - to do things and direct affairs in a way He envisions for the country and the people of Bhutan. This privileged lot should, by virtue of being hand picked by the King, ensure that good counsel is provided to the erring politicians and the civil service. Punishingly costly recommendations such as the vehicle quota entitlement should have never been allowed to find its way into the Parliamentary resolutions. But it has – and it is now all poised for Royal assent.

This lot has failed the King and the country, as have others before them – His Majesty’s trust and faith was clearly misplaced - they failed to do what the King thought they would, on His behalf. They failed to comprehend that the King is the dispenser of kidu - not a usurper of it.

I have said this many a times in the past - that given our population size, all that we need is just 10 hard working people to propel this country to unmatched glory. Unfortunately we have only one out of the ten needed, who is working tirelessly. The rest are vile opportunists, with the country's interest furthest from their agenda!

Tenzing Lamsang’s Drive for MP Vehicle Fund

In the last issue of the TheBhutanese newspaper, its Editor Tenzing Lamsang proposed the idea that the Bhutanese farmers and the private sector employees consider contributing to the MP’s Vehicle Fund. Frankly the joke is in poor taste. It is not really funny any more.

But I see the point Tenzing Lamsang makes. Our MPs are not so stupid to accept monetization of their quotas - they know that they can sell their quotas in the open market for as high as Nu.2.00 - 2.50 million, close to half a million or a million more than that offered by monetization. So they will fight tooth and nail to hang on to their quota allocation. I am the prize idiot to have believed that there can be some good and honest politicians too.

However, I am not done being the un-put-downable-naïve: I still believe that there may yet be some small chance that the vehicle quota may be fully monetized - without segregation of the special class of people - because the National Assembly session is not yet over. Something may still come up and offer our elected leaders their moment for redemption.

Until the National Assembly session is over - I am going to shift focus and do a series of articles on the history of MONEY in the country - the one thing that seems to define our elected leaders' morality and holds sway over their minds and hearts.

You can already see that I have started the journey - from the change in the Masthead of my Blog. Watch this space for some very interesting posts on the country's journey towards monetization.

Imported Energy Cheaper Than Our Own

Wangcha Sangey says it all in his Blog:

“…….. Presently Bhutan gets less than Rs. 2.00 per unit for export to India. And domestic average rate is around Nu: 3 to 4 per unit…..

Many CEOs related to electricity production and distribution in Bhutan have received red scarfs. In return each of them have come up with different calculations of high domestic power rate to oppress the Bhutanese home consumers…..”

He is obviously livid with frustration. So am I … this is precisely the point I have been making for years.

We are supposed to be a net exporter of electricity. We say that we generate thousands of megawatts of electricity. In doing the hydropower projects, we devastate our ecology. We shackle our river systems to eternal bondage. We enslave many generations of Bhutanese with hundreds of billions of loan money at 10% interest. And after all that, we queue up at the fuel stations for hours, to buy imported energy.

Why is our own energy source beyond our reach? What explanation can there be that the owners of the hydropower projects – the Bhutanese people – have to pay twice the amount charged for export? Where is the logic in exporting energy, only to spend more to import? Please do not tell me that we do so to earn Indian Rupees. That reason would be totally flawed. If that were true, Indian Rupee would be oozing out of our ears. On the contrary, the truth is that we are strapped with billions of Ngultrums in Indian Rupee loans, at 10% interest.

Successive governments have suffered paucity of morality. Today the issue of vehicle quota remains sidelined. Each of the country’s regulatory authorities know of the crime that continues to be committed. All the luminaries that make up the Pay Commissions constituted so far did nothing about this shameful and blatant act of crime - because all of them gained personally by allowing this corruption to be perpetuated.

We all look up to our leaders to provide leadership, to lead by example, to do the honorable thing, to work for the good of the country and the people. But when they fail time and again, when they think of their own benefits over national interests, we as a nation is in great danger of peril.

I feel very sad and discouraged.

The Vehicle Quota - A State Sponsored Crime

The KUENSEL of 6th June, 2019 reporting on the issue the Vehicle Quota writes as follows:

“The Prime Minister, Cabinet Ministers and equivalent positions, members of parliament, and term-based appointments also have an option to monetize their vehicle quota for Nu.1.5 million (M).

The introduction of such options comes with certain conditions. The finance ministry will strictly enforce that the vehicle quota shall not be transferred/sold, the quotable holder shall be liable to pay the applicable taxes and duties on the original CIF value of the vehicle……..”.

I am not too clear on what is being said – but I get the sense that what this means is that the above named posts are being allowed vehicle quota with an option to monetize them, should they choose to. But what is coming through very clearly is that these select beneficiaries will be monitored by the Finance Ministry and the vehicle quota rule will be enforced “strictly”.

We already have a vehicle quota rule in place, since many decades – the most recent one being the one that was revised in 2014 under the PDP government. Therefore it is not correct to speak as if the rule was never there. Please read about the rule at the following:

https://www.mof.gov.bt/wp-content/uploads/2014/08/vqr2014.pdf

Since the vehicle quota came into being from the mid 70’s, thousands of vehicle quota entitlements have been issued. And we all know - the RAA, the ACC, the Prime Minister, the Opposition Leader, the Chief Justice, the Chief of Police - even the rat catcher in the streets - that the bulk of the quotas would have been sold with impunity. These people knew very well that they were breaking a law - but that did not prevent them from committing the crime. And yet, think of one incident where a criminal has been charged for the crime of selling the vehicle quota - not a single one to date!

Therefore please do not say that the Ministry of Finance will this time be able to curtail this shameful crime that is becoming a state sponsored corruption. If you think this “strict Finance Ministry enforcement” will change anything, you are mistaken. Please read the following and wisen up!

https://thebhutanese.bt/mps-vehicle-quota-not-yet-cleared-but-mps-already-driving-imported-prados/

During the talk I gave to 48 guide trainees few weeks back, I had said that it is simple to be yourself – you cannot make a mistake in being what you naturally are. It is when you try to be someone else whom you are not, the trouble begins. Let us therefore understand ourselves and design our regulations accordingly.

It is for this reason I believe that the only way to effectively fight “fronting” and “undercutting” is to bring some morality into our value system. If not our endeavors will continue to remain a challenge forever. Remember that the malice that is fronting has been in existence since the advent of modernity. The battle to eradicate fronting is not new - we have not succeeded so far because the most unexpected of them are into it.

Consider this:

The first thing the lawmakers - the MPs - do is begin their law making journey by committing an act of crime - selling their vehicle quota. The first thing the civil servants do when they attain a P3A level, they start by breaking a law. Obviously not all do it - but more than most do it.

You know it would be interesting to go through the records of the Ministry of Finance and find out which of the quota receivers have received how many quota vehicles and where they are now. In fact it would be quite revealing to know which persons took how many quota allocation letters in their life time - nothing of malice - merely an exercise in academia.

We would all provably be shocked at the findings!

I urge the DNT government and the present set of law makers to monetize all the vehicle quota entitlements - if they believe that we have the financial resources to do so. But there should be no quota system at all.

DNT’s Daant: Khaane Ke Ya Dikhaane Ke?

The present set of lawmakers need to seriously consider what they will be imperiling – should they choose not to be responsible – when they discuss the issue of vehicle quota in the coming days.

I spoke about this on this Blog some four years back – but I want to speak about it once again so that the issue remains in the public attention.

I believe that not many of the Hon’ble Members of Parliament of the NA & NC are aware of the fact that the payments for the hydropower projects – both 70% loan at 10% interest and 30% grant – do not come into the coffers of either the GNH or the Ministry of Finance. It goes directly into various bank accounts of the power projects – most likely in the Indian banks in Hasimara or Alipur Duars.

Against the above backdrop, consider that almost 70% of the fossil fuel imported by Bhutan is said to be consumed by various hydropower projects around the country. So, what is the implication here? The implication here is that this scam has long term implications the impact of which we have already felt in a variety of forms – energy trade imbalance, Rupee crisis, depleting foreign currency reserve, poor control over project fund disbursement, poor stewardship resulting in rampant corruption etc.

https://yesheydorji.blogspot.com/2015/09/the-dark-siade-of-our-hydropower.html

The vehicle quota exasperates this problem further - because every vehicle quota generates two vehicle imports - the more you import the more you compromise the hydropower benefit, if any.

In Bhutan’s context hydropower is not an end to a means – it has to be seen as a means to an end.

The Parliamentarians will do well to remember what the World Bank's economist Dr. Martin Rama said about Bhutan’s duty exemptions and tax holidays:

 “…… the decline in tax revenue in relation to GDP is not due to a change in tax instruments or in tax rates, but because of policy decisions of tax holidays and exemptions. Sales Tax exemptions result in 50 percent of foregone revenue. Further around 63 percent of all imported commodities are exempted from Custom Duties.”

“Instead of losing the tax revenue to exemptions that are not rational, management of taxation could also play a vital role in attaining fiscal self-sufficiency.”

The vehicle quota debate has been going on for a long time – nothing has come of it so far. Look at what the Ex-Prime Minister had written in 2009, when he was the Opposition Leader:

http://www.tsheringtobgay.com/government/2009/taxing-cars.html

There is a very nice Indian saying that goes, “Hathi ke daant dikhaane ke kuch aur khaane ke kuch aur”. Meaning: The elephant is equipped with two sets of teeth – one for display and the other to chew with.

During PDP’s five years tenure, the RSTA reported that the country recorded the highest percentage increase in new motor vehicle registrations. Obviously the PDP’s teeth that were on display was the display set.

Lets see what the DNT will display.

No More IDEC For Import of Private Vehicles

I became entitled to a Vehicle Quota in 1979. I wanted to buy a TOYOTA Corona sedan. The CIF Phuentsholing price then was Nu.64,000.00. The problem was - I did not have the money. However, the Bank of Bhutan was offering 50% of the cost price as loan which meant that I needed Nu.32,000.00. I did not have that either. So I travelled all the way to Gelephu to speak to my favorite uncle to ask him for a loan. He looked at me and said; "You are asking the bank for 50% loan of the cost … and you are asking me for the other 50% as a loan. This means you are buying your famous TOYOTA Corona car with 100% loan. Tell me, how are you going to be able to repay the loan?" I said; "I do not know."

He said; "Forget it – I will give you the asking Nu.32,000.00 free – go and buy your car." Nu.32,000.00 in 1979 was a whole lot of money – but my late uncle loved me dearly.

When I returned to the STCB in Phuentsholing to make my portion of the down payment of Nu.32,000.00, I was informed that I need to put in Nu.34,000.00 and not Nu.32,000.00, because the price of the car had appreciated since I last spoke to them. I was crestfallen – I did not have the additional Nu.2,000.00. Thus my chance to use my vehicle quota to import a car slipped away and that was the first and last time I ever attempted to use a vehicle quota in my life.

Those days the civil servants were of a different vein – they never misused the vehicle quota entitlement for monetary gains.

Much later, after I resigned from the civil service and became successful in business, I became financially capable to own a car – I did own few of them over the years - but I never bought a vehicle quota. I do not intend to begin to do so now.

Truth be told, the most significant segment of my life’s journey began as a consequence of this vehicle quota and my inability to use it – a story to be told another day.

Having posted my article on the Vehicle Quota issue yesterday, I learnt from the KUENSEL that the vehicle quota is being proposed to be monetized. I am encouraged – but not entirely happy with all of the proposals.

It seems that some will still be allowed quota and import of vehicles. It is said that the Ministry of Finance will monitor and enforce the rules strictly. Is this a joke? Are we saying that the rule that the vehicle quotas shall not be sold or transferred was not there already? Has it prevented the beneficiaries from selling them with impunity? In fact the talk going around sometime back was that the MPs had formed a syndicate and had fixed a TOYOTA Prado’s quota selling price at Nu.2.5 million.

I urge the government and the lawmakers to forget this import allocation to some select group of people. I can guarantee you that it will continue to be misused, as in the past. The morality of the Bhutanese people has not undergone a sea change in the last year or so. Recall the shameful incident that occurred with respect to vehicle quota, at the start of the PDP tenure. If the government is in the mood to be generous, allocate a fixed sum of vehicle allowance to this select group of people – but please do away entirely with the quota. No IDEC should be issued ever for import of private vehicles – everyone should pay the duties and taxes. The select group of people for whom import quota is contemplated can use the allowance to pay for the duties and taxes.

Let us begin the process of mending the moral decay that has set in into the Bhutanese morality.