The minister said that in a democracy the ministry would never put up an issue to the government that would violate the ‘basic and fundamental rights’ of the people. “Even if the government is thinking of some taxation on cars it will only go ahead after getting the views of all stakeholders that can in turn can represent the views of ordinary citizens,” said the minister.

An MOIC official on the condition of anonymity said, “after the large scale public reaction to media reports on the MOIC car tax proposal it is unlikely that this proposal in it’s current form will get through”. In a recent proposal updated on August 29, the MoIC and RSTA recommended that on the existing 15 percent sales tax for all vehicle types 20 percent more be added for light vehicles, 12 percent more for taxis, five percent more for two wheelers and commercial vehicles like trucks but no increase for passenger buses and power tillers.

The department of revenue and customs who had met MOIC and RSTA was supposed to come up with the final figures. “We did have a meeting with MOIC and RSTA but for now we will not be studying any car tax slab at all,” said the customs director Choyzang Tashi.

The minister said that MOIC was just looking at coming up with various proposals on controlling the number of cars. “However, a policy where ‘I have bought my car but you should not buy one since it will lead to pollution’ will not work since people should have an opportunity to upgrade the status of their life,” said the minister. “Anything that impinges on the basic right of the people will never see the light of the day,” he added.

The minister said that by taxing people buying multiple cars it would generate revenue, which could go back to improving public transport. He, however, said that the finance ministry would look at the taxation percentages if it were approved.

People on kuenselonline.com and through letters had put forward various arguments against the car tax proposal. They argued that it would be an undemocratic move, favor the rich who can still buy higher taxed cars, people would still buy taxed cars, and the need to improve public transport before considering such a move. Car figures were also exaggerated since it included all types of vehicles and only few owned single private cars.

On concerns that too many cars were leading to road congestion and pollution the minister said that RSTA is coming up with a study they have been working on for the last few months and international consultants were also be hired to study the issue.

As of 2008 there were 38,276 vehicles in the country including private cars, two wheelers, taxis, government vehicles and transport services.