11 September, 2008 - The government’s proposal to increase import duties on vehicles has led to an increased demand for automobiles from dealers across the border in Phuentsholing.

Anticipating a massive increase, Bhutanese are ordering vehicles like never before, said a dealer in Jaigaon. “Sales have increased by almost 50 percent recently,” said the salesman. “Orders are placed either in person or through telephone calls.”

Kaysons automotive, a Chevrolet dealer, recently stopped taking bookings. “We’ve received bookings for over 80 cars in just one and a half month of our establishment,” said an agency employee.

Durga automotive, from whom many Bhutanese buy Santro and Maruti cars, is enjoying a spurt of sales too. “We receive about five orders every day,” said a salesman.

The sole Bhutanese private dealer, Zimdra automobile, is also riding a surge in demand. Zimdra sold about 75 vehicles in August alone, which is about a 5 percent increase over regular sale, according to the sales manager.

Inspecting a car, Dorji Tshering, a businessman, said that he sold his old car and decided to buy a better one before the sales tax increased. “There’ll be a huge cost difference and cars will become dearer for many,” he said. “It’ll hurt to pay more for the same car.”

The proposal has also made those people, who want to sell their vehicles, think twice. Tshering, a businesswoman said that she wants to sell her Maruti van after the government finalises the tax proposal. “I think my old van will fetch a better price, because not many will be able to afford new cars if the duty is increased,” she said.

As speculation becomes rife, many debate the pros and cons of the government’s decision to increase the sales tax. “The idea of less traffic congestion, less pollution, and less rupee outflow is good,” said Jigme, a civil servant.

Meanwhile, the price of imported cars has increased in the past month. The price of the latest Hyundai model, i10 and Santro has gone up by about Nu 8,000. The price of a Maruti is expected to increase any time soon, according to dealers in Jaigaon.