Bhutan to Impose 115% Tax on E-cigarettes Starting January 2026

Nov.05.2025
Bhutan to Impose 115% Tax on E-cigarettes Starting January 2026
The Ministry of Health (MoH) of Bhutan has announced stronger actions to combat the growing threat of e-cigarette use, especially among youth. While no new vaping-related lung collapse cases have been reported since 2024, the MoH confirmed that fiscal and legal reforms are underway to include e-cigarettes in tax and tobacco control laws starting January 2026.

Key Points

 

  • No new health cases: JDWNR Hospital reported no further vaping-related lung collapse cases since 2024.
  • Youth vaping concerns: MoH expressed growing alarm over rising vape use among young Bhutanese.
  • Tax reforms: Parliament approved a bill imposing 115% total tax on e-cigarettes, effective January 2026.
  • Regulatory expansion: Tobacco Control Rules will be revised to explicitly include e-cigarettes, vapes, and heated tobacco.
  • Goal: Align fiscal and legal systems to curb consumption and protect public health.

 


 

2firsts,November 5, 2025——The Ministry of Health (MoH) of Bhutan is taking proactive steps to address the increasing use of e-cigarettes, which officials describe as an emerging threat to youth health nationwide.

 

According to the Jigme Dorji Wangchuck National Referral Hospital (JDWNRH), no new cases of vaping-related lung collapse have been recorded since two incidents last year at Lungtenphu Hospital.

 

“Apart from what is already mentioned, we have no record of any further similar cases of lung collapse due to vaping. Should similar cases occur, we will duly record them,” said Health Minister Tandin Wangchuk.

 

MoH reaffirmed that it is closely monitoring all reported cases and working with relevant agencies to strengthen prevention and control.

 

Contrary to public belief, the ministry clarified that e-cigarettes are not tax-exempt. The Parliament has approved new fiscal measures imposing a combined 115% tax on vaping products, including 100% excise, 10% customs duty, and 5% GST, effective January 2026.

 

Devices for e-cigarettes will also face a 20% excise tax, in addition to customs and GST. The government aims to both protect youth and secure stable fiscal revenue.

 

Revisions to the Tobacco Control Rules and Regulations will explicitly include e-cigarettes, vapes, and heated tobacco products, strengthening oversight of import, sale, and use. The Tobacco Control Act, which predates these products, will also be updated to remain relevant to current challenges.

 

Health Minister Wangchuk said the government continues to enforce strict bans on advertising, promotion, and sponsorship of tobacco and related products, including e-cigarettes, to reduce their appeal—particularly among young people.

 

Image source: Bhutanese

 

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