Showing posts with label Import Quota. Show all posts
Showing posts with label Import Quota. Show all posts

18 May 2012

Replace Vehicle Import Quota with Bonus

One of the recommendations submitted by the team that assessed Rupee Crunch was to stop Vehicle import quota for civil servants. At first it seemed like we are going to be deprived of a lifetime bonus but it didn't take long before I saw the light at the end of the tunnel. Government may not be worried about the 35% of the total cost of the car it's paying to the quota receiver, it's the 75% that gets dragged along across the border.
Government gives vehicle quota to senior officials upon attaining grade 6, which means at least ten years in service and therefore it's an expression of recognition for unfailing service. But canceling it altogether could be misinterpreted in many demoralizing reasons, thus it's important to device a way to address the rupee issue without depriving civil servants of their rare gift.
As far as the trend goes, most of the civil servants own good cars by the time they reach grade six, and they resort to selling their import quota to private businessmen. The value of a quota is over Nu.400,000 but best price I ever heard of was Nu.150,000 and some surrender at Nu.50,000. By this the bigger portion of the gift from government goes to buyers of the quota. More over quotas are indirectly making the import of cars compulsory, which is the biggest concern now.
Therefore, I suggest my government to replace Quota with Bonus. Pay six months salary as bonus to the employees upon attaining grade six, the amount will be far lesser than what quota is taking away at the moment. This is not only economical for the government but also has big impact on the employees who could receive the full value of the gift. And with this the indirect-compulsion on import of cars will cut down to zero, solving the biggest question without hurting a soul.