TENZIN LHAKI | Thimphu
The Opposition Party has called on the government to take immediate measures to prevent public confusion and unfair price increases following the implementation of the Goods and Services Tax (GST).
In a press release, the party recalled that Parliament passed the Goods and Services Tax (Amendment) Act of Bhutan 2025 in June last year, providing the government with a six-month transition period to ensure preparedness, public awareness and smooth implementation. Despite this, the party said many citizens continue to face uncertainty as GST takes effect.
The Opposition Party expressed concern over reports of double taxation, where both the former Bhutan Sales Tax (BST) and the new GST are allegedly being charged on goods imported before January 1, 2026. It said the issue of double taxation on pre-2026 imports contradict the intent of the Act and places an unfair burden on citizens, particularly affecting the prices of food items, household goods and other daily necessities. If not addressed urgently, the party warned, the situation could encourage unjustified price hikes and undermine public confidence in the tax reform.
Clarifying the intent of the new tax system, the Opposition Party stated that GST is not meant to raise prices across all commodities. According to the party, some goods that were previously tax-free are now subject to a 5 percent GST, while many items that attracted higher BST rates are expected to become cheaper. Goods with unchanged tax rates, it said, should not see any price increase. The party attributed unjustified price rises not to the law itself, but to shortcomings in government advocacy, preparedness, market oversight and enforcement.
Citing its constitutional mandate under Article 18(4) and (5) to hold the government accountable and safeguard public interest, the Opposition Party outlined several actions it wants the government to take.
First, it called for stronger nationwide market monitoring and inspections to ensure commodity prices reflect the new tax rates, along with firm action against violations. Second, it urged the government to publicly release a clear and easily understandable list comparing previous BST rates with applicable GST rates to improve public understanding and enable citizens to assess price fairness.
The party also stressed the need to resolve the issue of double taxation on old stocks without delay. It noted that the six-month transition period was intended to address such foreseeable issues and called for a transparent, time-bound mechanism to correct cases of double taxation. In addition, it urged the government to conduct nationwide awareness programmes for the public and stakeholders on GST provisions, rate changes, implementation procedures, compliance requirements and the expected impact on prices compared to the earlier BST system.
Describing GST as a major reform affecting every household, the Opposition Party said it should not become a source of confusion, unfair pricing or hardship for ordinary people. It stated that timely action, clear communication and effective market oversight are essential for smooth and fair implementation.
The party urged the government to act decisively to protect consumers, stabilise markets and maintain public trust, warning that failure to do so would leave the government accountable for economic hardship and public dissatisfaction arising from what it described as flawed implementation of GST.
