One of the big discussion points has been the impact of the 5 percent Goods and Services Tax (GST) on essential goods. While GST was expected to increase prices in food items like vegetables, fruits, beef, cereals (minus rice), flour, it was supposed to bring down prices in items like …
Read More »GST collection much below target as of 11th March
The internal target of the Ministry of Finance (MoF) for the Goods and Services Tax (GST) collection is Nu 6.8 billion (bn) for six months from January to June 2026 with an average monthly target of Nu 1.133 bn. However, as of 11th March 2026, the total GST collection which …
Read More »Vehicle dealers allege double taxation with GST
Vehicle dealers across Bhutan have reduced prices under the new Goods and Services Tax (GST) regime, as the combined GST and Excise Tax is lower than the previous Sales Tax and Green Tax. Price reductions were expected to range from 9 to 21 percent depending on the vehicle model and …
Read More »ERA proposes Nu 5.63 per unit unsubsidized tariff for Low Voltage users
After taking tariff submissions from the Bhutan Power Corporation (BPC) and Druk Green Power Corporation (DGPC) for the three-year tariff revision cycle, doing a public consultation and its own analysis and number crunching, the Electricity Regulatory Authority (ERA) has proposed domestic tariff for High Voltage (HV) users, Medium Voltage (MV) …
Read More »UN to do more with less in Bhutan as budget cuts and resource shortages bite
The UN Secretary-General António Guterres recently warned that the organization could face “financial collapse” by June 2026 if states fail to settle outstanding payments. The UN is in its third year of a cash crunch, and while the USA is still the largest contributor, it is not doing the heavy …
Read More »1.189 billion GST collected as 78.14 percent file as of 2nd March evening
As of Monday evening, 2nd March today, around 5 pm, 2,585 business entities out of 3,308 GST registered business entities have filed their Goods and Services Tax (GST) for January 2026. This represents 78.14 percent of total filers with another 7 hours remaining till the 2nd March deadline expires at …
Read More »Rising construction and financing costs for hydro projects end era of cheap domestic tariffs
Bhutan is targeting 25,000 MW of electricity by 2040, comprising 20,000 MW from hydro projects and 5,000 MW from solar projects under the National Energy Policy. An underlying assumption among many Bhutanese is that the country will continue to enjoy relatively cheap power tariffs (compared to the region) as more …
Read More »Companies may pay Nu 90,000 in fines for delayed TDS deposits
An accountant at a small company was shocked when he went to deposit the Tax Deducted at Source (TDS) for staff salaries and January rent around 16th February, only to discover he had accrued nearly Nu 4,000 in fines for missing the 10th February deadline. He was charged Nu 300 …
Read More »OAG reviewing Sandeep’s case
The Office of the Attorney General (OAG) has assigned two lawyers to handle Sandeep Rai Chamling’s (of Pandora Biz) case, given the number of people and issues involved. The OAG is currently reviewing various documents, evidence, and possible charges submitted by the Royal Bhutan Police (RBP). In particular, certain documents …
Read More »Tobacco imports jumped in 2025
According to import data, Bhutan saw Nu 815 million (mn) worth of tobacco in various forms and e-cigarettes being imported in 2025 with a break up of 766.56 for tobacco and Nu 48.447 mn for e-cigarettes. In 2024 tobacco products worth Nu 745 mn were imported and e-cigarettes worth around …
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