Following the adoption of Goods and Services Tax (Amendment) Bill 2026 in the National Assembly last week, the finance minister introduced the bill in the National Council today. The bill proposes new exemptions such as several types of edible oil, butter, rice, and motorised wheelchairs, aimed at easing the cost of living for Bhutanese households.
The proposed amendment adds 23 new goods to the exemption list based on the Bhutan Trade Classification and Tariff Schedule.
The largest category of exemptions includes 19 types of edible cooking oils and locally sourced butter.
Finance Minister said the amendment was necessary because the existing exemption covered only a limited number of edible oils.
Lekey Dorji, Finance Minister said, “Previously, only two types of edible oil were exempted from GST. However, according to the BTC code, there are many different types of edible oil. Therefore, 19 types of oil and locally sourced butter have now been added to the exemption list. For example, soybean oil, sunflower oil, coconut oil and many other types of edible oil have been included under the GST exemption.”
The bill also proposes GST exemptions for two additional rice categories, husked brown rice and red rice or Yeechum.
In addition, motorised wheelchairs for persons with disabilities have been included in the exemption list. Previously, only manual wheelchairs were exempt from GST.
During the session, a Member of Parliament raised concerns over public perceptions of double taxation and increasing commodity prices since the implementation of GST from 1st January this year.
Chairperson of Good Governance Committee Kencho Tshering, said, “At the point of entry, tax is paid. Then, the wholesaler and the retailer also charge tax, resulting in tax being paid three times and increasing the prices of goods. For example, rice that used to cost Nu 1,350 has now reached around Nu 1,600. The ministry has said that prices are fixed by the sellers and that they do not have the authority to regulate prices. Therefore, I think price regulation also needs to be looked into by the ministry, since the tax is being levied by them.”
The minister clarified that the Competition and Consumer Affairs Authority is responsible for monitoring and regulating prices.
“Currently, the Competition and Consumer Affairs Authority looks after the price regulation, as directed by the Prime Minister himself. Even before GST, the Consumer Protection Act requires businesses to provide an invoice for purchases of Nu 100 and above. However, this is a practice that we currently do not have.”
Deliberations on the bill will continue on Wednesday.
Kinley Bidha
