We present a measurement of the trigonometric parallax of IRAS 05168+3634 with VERA. The parallax is 0.532 ± 0.053 milli-arcsec, corresponding to a distance of 1.88+0.21−0.17 kpc. This is significantly closer than the previous distance estimate of 6 kpc based on a kinematic distance measurement. This drastic change in the source distance implies the need for revised values of not only the physical parameters of IRAS 05168+3634, but it also impies a different location in the Galaxy, placing it in the Perseus arm rather than the Outer arm. We also measured the proper motion of the source. A combination of the distance and proper motion with the systemic velocity yields a rotation velocity Θ = 227+9−11 km s−1 at the source position, assuming Θ0 = 240 km s−1. Our result, combined with previous VLBI results for six sources in the Perseus arm, indicates that the sources rotate systematically more slowly than the Galactic rotation velocity at the local standard of rest. In fact, we derive peculiar motions in the disk averaged over the seven sources in the Perseus arm of (Umean, Vmean) = (11 ± 3, −17 ± 3) km s−1, which indicates that these seven sources are moving systematically toward the Galactic Center and lag behind the overall Galactic rotation.