Vehicle quota, not again!- Kuensel

The vehicle quota system, which allows MPs and civil servants to import vehicles at reduced cost, has morphed into a privilege that disproportionately benefits a small segment of Bhutan's population.

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Thematic image of a street in Thimphu, Bhutan. If at all the vehicle quota system is re-instituted in the near future, it should be expanded to include other sectors such as private employees, corporate workers, and CSOs. It should be an “all-or-none” policy. PHOTO: UNSPLASH

December 6, 2024

THIMPHU – The recent discussion in Parliament on reintroducing the vehicle quota system for Members of Parliament (MPs) and civil servants is a step backwards. The vehicle quota system, a relic of our bureaucratic past, has once again surfaced, purely driven by vested self-interest and political expediency.

The vehicle quota system, which allows MPs and civil servants to import vehicles at reduced cost, has morphed into a privilege that disproportionately benefits a small segment of our population. And the irony is, this group already enjoys substantial salaries, perks, and benefits. Meanwhile, the vast majority of Bhutanese—employees of corporate organisations, private sector, and civil society—are entirely left out.

This policy of exclusion raises a fundamental question: Why is such a privilege accorded to only a select few?

In a democratic society, this policy creates a blatant divide between the haves and the have-nots. In its essence, the quota system is a policy of segregation. It institutionalises inequality by granting benefits to a specific group while excluding others. The truth is, the quota system serves only a minority.

The rationale often given for vehicle quota is that MPs and civil servants need reliable transport to carry out their duties. If that is the argument, much like the system used for other public servants, MPs should also be provided with government duty cars for official use. These pool vehicles will easily serve MPs for three or four parliamentary terms. No need for special vehicle quotas!

One of the most hideous aspects of the vehicle quota system is its rampant misuse. It is an open secret that quotas are often sold for profit in the market. The vehicle quota also has a huge implication on tax revenue.

Let’s do a quick calculation. MP’s Prado quota would get a tax exemption of Nu 4.5 million, which amounts to a staggering Nu 321.58 million for 72 MPs.

According to the Royal Audit Authority’s review report on government vehicles and foreign vehicle quota system in 2019, the government lost more than Nu 3 billion in tax revenue in the five years between 2014 and 2018 through foreign vehicle quota.  Interestingly, the quota was extensively misused. More than 9,000 vehicles were imported through government-issued vehicle quotas between 2014 and 2018.

If at all the vehicle quota system is re-instituted in the near future, it should be expanded to include other sectors such as private employees, corporate workers, and CSOs. It should be an “all-or-none” policy. But as we know this will have huge ramifications on tax revenue—something that does not bode well for our country.

We must understand that policies should be designed to serve the nation, not to appease a specific group. Catering to the interests of a select few at the expense of the majority will only deepen societal divides and foster resentment. It is time our elected leaders rise above self-interest and political calculations, and prioritise policies that serve the collective good.

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