𝐏𝐞𝐝𝐞𝐬𝐭𝐫𝐢𝐚𝐧 𝐅𝐞𝐞 𝐖𝐚𝐢𝐯𝐞𝐫 𝐭𝐨 𝐇𝐢𝐭 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐂𝐨𝐟𝐟𝐞𝐫𝐬

…𝒅𝒊𝒔𝒄𝒐𝒏𝒕𝒊𝒏𝒖𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝑵𝒖 10 𝑭𝒆𝒆 𝒂𝒕 𝑷𝒉𝒖𝒆𝒏𝒕𝒔𝒉𝒐𝒍𝒊𝒏𝒈 𝑻𝒆𝒓𝒎𝒊𝒏𝒂𝒍 𝒓𝒂𝒊𝒔𝒆𝒔 𝒒𝒖𝒆𝒔𝒕𝒊𝒐𝒏𝒔 𝒐𝒏 𝒇𝒖𝒏𝒅𝒊𝒏𝒈 𝒇𝒐𝒓 𝒎𝒂𝒊𝒏𝒕𝒆𝒏𝒂𝒏𝒄𝒆 𝒂𝒏𝒅 𝒆𝒎𝒑𝒍𝒐𝒚𝒎𝒆𝒏𝒕 𝒔𝒖𝒑𝒑𝒐𝒓𝒕.

By Krishna Kumar Sanyasi

The decision by the government to discontinue the collection of the Nu 10 user fee at the Phuentsholing pedestrian terminal has not only raised concerns about the economic impact but also shed light on the unintended consequences that have emerged as a result of this seemingly simple act. While some applaud the move as a step towards convenience and ease of access, others are concerned about its economic repercussions, especially given the scrutiny on the country’s financial stability.

The abrupt halt to fee collection raises questions about the sustainability of funding for essential services such as maintenance and infrastructure development. As the nation grapples with economic challenges, inflation, and a shortage of reserves, the decision to forego a revenue stream that generated approximately Nu. 64 million in just over a year raises eyebrows. How will the government ensure the continued operation and maintenance of the terminal without this crucial source of income? What impact will this decision have on the overall economic landscape of Phuentsholing and the country as a whole?

The discontinuation of the user fee at the pedestrian terminal raises broader questions about fiscal responsibility and prudent economic management. As the government pledges to provide sufficient funds for essential operations, the implications of this decision on the nation’s financial health remain to be seen.

When the country is struggling with high levels of youth unemployment and an increasing number of civil servants seeking opportunities abroad, the decision to forego a revenue-generating mechanism that also created employment opportunities seems to contradict the government’s efforts to address these pressing issues.

According to Kezang Dorji, a resident of Phuntsholing who frequently crosses over to Jaigon for shopping, expressed deep concerns regarding the government’s decision to waive the pedestrian terminal fee. Dorji emphasized the potential negative impact of this move on government revenue, citing instances where budget constraints have hindered infrastructure projects. He highlighted the importance of maintaining the world-class standard of the terminal and questioned the feasibility of upkeep in the absence of the terminal fee.

Sabina Timsina, a 21-year-old college student, expressed her thoughts on the recent decision to stop charging Nu. 10 for crossing the border through the pedestrian terminal. “From my perspective, this decision reflects a lack of foresight by the current government. The fee was a good source of revenue for the country, which has now been lost. Additionally, the government will now need to allocate a different budget for the smooth operation of the pedestrian terminal.”

Hari Prasad, a 43-year-old businessman in Phuntsholing, expressed his views on the recent government decision, stating, “It’s all politics. The current government promised in their manifesto to remove the fee, which made people happy and led them to vote for them. However, what they failed to consider are the long-term repercussions of waiving the fee. The government often claims there is no budget, but by stopping a potential revenue source, they have hindered the terminal’s financial sustainability. It remains to be seen how the pedestrian terminal will function in the future.”

Sonam Lhamo, a resident familiar with border crossings, shared her perspective on the government’s decision to waive the pedestrian terminal fee. Lhamo highlighted the dual impact of this move, noting that while it benefits frequent border crossers by eliminating their financial burden, it also poses a significant loss for the government. She emphasized the need for the government to allocate an additional budget for workers and maintenance, raising concerns about the sustainability of the terminal in the absence of revenue from the fee.

As the nation navigates through economic challenges and strives to create a conducive environment for job creation and economic growth, it is essential for the government to consider the full spectrum of consequences that arise from policy decisions. While the discontinuation of the user fee may have seemed like a simple and straightforward move, its impact on employment and economic stability highlights the need for a more comprehensive and thoughtful approach to policymaking. It is crucial for the government to address these unintended consequences and ensure that future decisions are made with a holistic understanding of their implications for the country’s workforce and economic landscape.

In a resolute statement, Prime Minister Dasho Tshering Tobgay has affirmed the government’s commitment to ensuring ample financial resources for the maintenance and smooth operation of the terminal. These pledges were meticulously crafted to be swiftly ratified following the formation of the new cabinet. Among these commitments was the termination of user fees at the pedestrian terminal, a promise that the PDP administration vowed to fulfill on their inaugural day in office. Consequently, this initiative was effectively implemented starting on January 30, 2024.
According to the Prime Minister’s office (PMO), “The discontinuation of the pedestrian fee was guided by multiple considerations, focusing on optimizing human resource deployment, streamlining entry and exit processes, and minimizing potential conflicts at the pedestrian terminal.”

“Initially, 8 Immigration Inspectors were assigned to collect fees in shifts. With the discontinuation of user fees, this change has allowed them to refocus on essential immigration duties, such as counter services and inspections. Additionally, 5 inspectors who were previously tasked with fee collection management are now fully dedicated to their core responsibilities, resulting in more effective execution of their roles.”

“This has notably expedited the pedestrian clearance process, allowing travelers to proceed directly to immigration counters without delays caused by queues for fee payment. This adjustment has significantly improved the flow and speed of pedestrian movement through the terminal.

This has also led to minimizing potential conflicts at the pedestrian terminal with a reduction in confrontations between pedestrians and immigration officials, which previously arose during fee payment, thereby enhancing the overall terminal environment,”

According to the PMO, the Government has directed the Ministry of Finance to ensure the provision of adequate funds in compliance with existing financial norms for necessary maintenance and upkeep of the terminal, upholding its standard and functionality for public use.

Even the government is aware of some of the foreseen implications of this action, and according to the PMO, some implications are Revenue loss, given that the levy of user fees generated substantial revenue on a daily basis. With its discontinuation, one potential source of revenue is lost, which could impinge on government coffers in the long run.
The funding and overall upkeep of the pedestrian terminal will be handled by funding issued by the Ministry of Finance
The government is facing a critical decision as it must now allocate a separate budget to ensure the seamless operation of the Pedestrian Terminal. This allocation of funds, which could have been directed towards the development of other sectors such as providing computers and internet to remote schools.

The terminal is currently being monitored by the Regional Immigration Office of Phuentsholing, overseeing the overall operation and management of the pedestrian terminal, and the Integrated Checkpoint Unit (ICPU), under the supervision of the Royal Bhutan Police, is responsible for the overall security and surveillance, including access control at the pedestrian terminal. The pedestrian terminal was officially inaugurated in September 2022, coinciding with the introduction of a user fee system. This system was initially put in place to cover various operational expenses of the terminal, such as electricity costs, staff salaries, and maintenance.

Between November 2022 and December 2023, the Regional Immigration Office (RIO) collected approximately Nu 64 million in revenue from user fees at the pedestrian terminal. On a daily basis, the terminal sees the arrival or departure of around 10,000 to 12,000 individuals, including Bhutanese citizens and others from the region. This translates to a monthly revenue of about Nu 4.5 million in user fees, as estimated by Thromde officials.

In a context where policy decisions can yield significant ramifications, the imperative for a meticulous and judicious approach to governance is paramount. As Bhutan endeavors to confront economic challenges and cultivate an environment conducive to job creation and economic expansion, policymakers must meticulously assess the repercussions of their decisions to uphold the nation’s economic stability and the welfare of its workforce.