Top Takeaways:
• Bhutan’s Ministry of Health says it is strengthening prevention and monitoring efforts amid rising youth vape use.
• New fiscal measures will impose a 115% tax on e-cigarettes beginning January 2026.
• Updated tobacco-control rules will explicitly regulate e-cigarettes, vapes, and heated-tobacco products.
Bhutan’s Ministry of Health (MoH) states that it is taking further measures to combat the increasing use of e-cigarettes, citing growing concerns about vaping-related health risks and upcoming regulatory changes that will fully incorporate vaping products into the country’s tobacco control framework.
Health Minister Tandin Wangchuk confirmed that no new vaping-related lung collapse cases have been reported since the two incidents at Lungtenphu Hospital last year, according to the Jigme Dorji Wangchuck National Referral Hospital (JDWNRH). He stated that health authorities continue to monitor all potential cases through JDWNRH and regional medical centers, while working with other agencies on prevention efforts.
MoH also pushed back on public assumptions that vaping products remain untaxed. The minister pointed out that Parliament has already approved new excise-tax increases on alcohol, tobacco, areca nut, and pan masala—changes scheduled to take effect in January 2026.
Under the updated system, e-cigarettes and vaping products will be taxed a combined 115%, including 100% excise duty, 10% customs duty, and 5% GST. E-cigarette devices will also be subject to an additional 20% excise tax, in addition to existing import duties.
For traditional tobacco, Bhutan will shift from ad valorem taxes to specific excise rates: Nu 10 per cigarette and Nu 40 per cigar, plus a 10% customs duty and 5% GST. Chewing tobacco will incur a new Nu 1,500 per kg excise tax.
According to the ministry, the fiscal reforms aim to both discourage consumption and establish a more predictable revenue system. Regulators say the updates reflect changing patterns of nicotine use and the need to address nicotine products that were not expected when the original Tobacco Control Act was drafted.
A revision of the Tobacco Control Rules and Regulations will officially include e-cigarettes, vaping products, and heated-tobacco devices under clear regulatory oversight. MoH stated that the update will enhance controls on their import, sale, distribution, and use. The government will also maintain enforcement of bans on advertising, promotion, and sponsorship of tobacco and related products, including e-cigarettes.
