Bhutan to Impose 115% Tax on Vapes, Tightens Laws

The Bhutanese Ministry of Health (MoH) is taking proactive steps to curb the growing threat of e-cigarettes, particularly among youth, by introducing significant new tax measures and strengthening regulations. This move follows rising health concerns and two recorded cases of vaping-related lung collapse at Lungtenphu Hospital last year.

Health Minister Tandin Wangchuk confirmed that while no new lung collapse cases have been recorded at the national referral hospital (JDWNRH), the MoH is closely monitoring the situation. He clarified that contrary to some beliefs, vapes are not untaxed. A new, more aggressive fiscal policy is set to take effect in January 2026.

Under the reformed system, e-cigarettes will be subject to a combined 115% tax, which includes a 100% excise duty, 10% customs duty, and 5% GST. This brings vaping products under a similar regulatory lens as traditional tobacco. The devices themselves will also face a new 20% excise tax on top of existing duties, ensuring both hardware and refills are regulated to deter use.

Furthermore, the Tobacco Control Rules and Regulations are being revised to explicitly include e-cigarettes, vapes, and heated tobacco products, which will grant the government stronger oversight of their import, sale, and use. The government also continues to strictly enforce existing bans on the advertising, promotion, and sponsorship of all tobacco and related products to reduce their social appeal, especially among young people.

• Read more: Bhutan’s Strict Anti-Smoking Laws: Public Health or Too Far?
• News source: MoH introduces new measures to regulate and tax e-cigarettes as youth vaping concerns rise

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.

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