Bhutan Launches GST from January 1, 2026: Small Businesses Feel the Pressure

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Bhutan has officially implemented the Goods and Services Tax (GST) from January 1, 2026, marking a major shift in the country’s taxation system. While GST registration is mandatory only for businesses with an annual turnover of Nu. 5 million and above, concerns are growing among small businesses operating below this threshold.
Many small traders report that they are being charged 5% GST by larger, GST-registered suppliers. As a result, even unregistered small businesses are indirectly bearing the tax burden. To recover these added costs, small businesses say they have no option but to increase their prices by around 5%, passing the impact on to consumers.

This situation has raised public concern, as GST—intended to be progressive—may be affecting small enterprises and daily prices more than expected. Business owners and consumers alike are calling for clearer guidelines and support measures to protect small businesses and ensure a smooth GST transition.

#BhutanGST #GST2026 #SmallBusinessImpact
#PriceHike #PublicConcern

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