What is the new GST tax in Bhutan?

Starting January 1, 2026, Bhutan has introduced a 5% Goods and Services Tax (GST) on most tourism-related services, including hotels, tour operator services, guides, and transportation.

Please note that the Sustainable Development Fee (SDF) is exempt from GST and remains unchanged.

This new GST replaces the earlier 10% sales tax that was applied mainly to hotels and restaurants. As a result, accommodation and food costs may effectively decrease, while services such as guides and transportation may see a slight increase. Overall, the change is designed to simplify taxation and create a more transparent pricing structure.