Bhutan Implements 115% E-Cigarette Tax

Bhutan’s Ministry of Health (MoH) announced a major fiscal crackdown on e-cigarettes, introducing a combined 115% tax on vaping products, including 100% excise, 10% customs duty, and 5% GST, all effective January 2026. Devices will also face a 20% excise tax alongside customs duty and GST.

The MoH said the move aims to curb rising youth use of e-cigarettes and align vaping products with traditional tobacco under the country’s regulatory framework. The Tobacco Control Rules and Act are also being updated to explicitly cover e-cigarettes, vapes, and heated tobacco products.

The government continues to enforce bans on advertising, promotion, and sponsorship of all tobacco and nicotine products.