The Bhutanese Leading the way.
There is a strange phenomenon going on these days with the prices of alcohol and tobacco going up as the Excise Tax for both products are set to push up prices in 2026.
It is suspected that hoarding of the two products are going on as the profit margins will be much higher once the taxes kick in from January 2026.
The Competition and Consumer Affairs Authority (CCAA) has received three formal complaints related to hoarding and rising prices of excisable goods, as businesses prepare for the implementation of a new excise tax in January 2026.
The Parliament endorsed the government’s proposal to levy an excise tax of Nu 1,200 per litre of pure alcohol content on all alcoholic beverages. Tobacco and tobacco products will also be taxed, with unstemmed, stemmed, and tobacco refuse set at Nu 1,500 per kilogram. Cigarettes containing tobacco and biri will be taxed at Nu 10 per stick, while chewing tobacco, jarda-scented tobacco, and snuff, among others, will also be charged Nu 1,500 per kilogram.
According to the CCAA, the three complaints filed so far concern hoarding. Consumers have reported noticeable price increases. The price of a case of lager beer has risen from Nu 1,500 to Nu 1,550, while a case of cigarettes that earlier cost Nu 1,900 is now priced at Nu 2,600, reflecting an increase of Nu 700. A pack of cigarettes that used to cost Nu 350 now sells for Nu 400.
A shopkeepers have said that purchasing alcohol from distributors has become more difficult.
“We need to now wait in line to buy alcohol from the distributors. We are only allowed 10 cases of beer per person and we need to wait in line for that,” a shopkeeper said.
CCAA noted that such measures may be an attempt by distributors to reduce the risk of hoarding on their side.
CCAA, and the Department of Revenue and Customs are inspecting the situation and looking into the matter as of now.
However, a CCAA official said that it is very difficult to prove hoarding.
